Could Renting A 2-Bed In London Right Now Be Better Than Buying…?
Is it better right now to rent a 2-bed in London, or buy a 3-bed in London?
Well, rents for 2-beds at the moment in London - in particular in the prime areas within central London - are quite frankly crazy!
Prices are incredibly high right now and show no sign of dropping, due to increased demand and limited supply, as more and more people are looking to move back to the centre of the city.
Reasons Why You Shouldn’t Rent Right Now
High rent
As described above, supply at this moment in time is decreasing, as more and more landlords have sold their property/ properties as mortgages rates have increased hugely. making renting out their 2-bed property next to pointless if they’re only getting a 2% - 3% rental yield and their mortgage payments are 5% or more.
High Competition
If you want to rent a 2-bed property in a prime street within a prime area of London right now, you’ll be up against a lot of competition.
This means that you’ll likely have to put an offer in soon after your viewing and you’ll probably find the entire experience stressful!
Landlords
Landlords aren’t always the most reliable.
Landlords are expected to replace faulty appliances and pay for repairs - after all, it is part of being a landlord!
In a market like the one today, some landlords might want to delay payment on repairs, etc, as they will be hardly making any money from renting their 2-bed property out.
“Buying a 2-bed property means that you have additional costs, such as stamp duty, conveyancing costs and the cost of a survey.
When you rent, you have none of these costs!”
Reasons Why You Should Rent Right Now
Time To Explore
Renting a 2-bed in London, especially if you’re new to the city, means that you can explore living in a range of locations before buying.
If you have a six month break clause inserted into your rental agreement, you could potentially move every 6 months for as long as you’d like to!
Short-Term Commitment
Not having the long-term commitment of purchasing a 2-bed property means that you have the freedom to move whenever you see fit (within reason!) and means that you can leave your 2-bed rental property at the end of your rental term.
Extra Costs
Buying a 2-bed property means that you have additional costs, such as stamp duty, conveyancing costs and the cost of a survey.
When you rent, you have none of these costs!
Repairs, Etc
When you’re renting, you don’t have to pay for aspects such as repairs or upgrades to the property - this is down to your landlord.
Do remember, however, that any damage caused by you will likely lead to you having to pay for repair costs that will get taken from your deposit or be an additional charge.