United Kingdom: the rent that is convenient
After exiting the European Union, the UK continued to remain in the sights of many potential buyers. The charm of London, but also of all the other cities belonging to this state, persists. After a very long year, therefore, also punctuated by the various lockdowns due to the pandemic emergency, we wonder how much it is worth relocating to the United Kingdom instead of paying a monthly rent. Reason why today, we at Realigro have decided to create an article to give an answer to this question. In a few lines, we will try to describe the overall picture of the current situation in the UK regarding the property market. So, if you're ready, we can start our column today!
We can say that the UK is currently going through a turning point. Inaugurated by Brexit, the new page in the history of this nation, is characterized by a notable collapse in rents. You haven't seen such low prices since 2014! According to statistics, at this historic moment it is cheaper to pay a monthly rent than a mortgage loan. Put simply, it pays to sign a lease rather than buying a new home.
But what figures are we talking about? In the first case, we start with an average rent of € 1,224 per month. In the second, however, the figure is around € 1,307 per month. A minimal difference that makes you think. It should also be remembered that the pandemic emergency had caused a drop in demand for rental homes, especially in London. Cause prices too high. Reason why, to avoid a real estate crisis and at the same time a devaluation of the properties already on the market, the cost of rents has decreased. And that's not all! Many real estate owners have decided to convert their homes for sale into homes for rent. This is because the demand for the latter has since increased. We can therefore say that the lifeline for many property owners was precisely this.
That of converting their homes for sale into properties to rent. But let's help with the numbers. Although there has been an increase of 7% on an annual basis in rents, this type of contract is still convenient compared to buying a house.
The difference (in monetary terms) in some cases even exceeds 200 pounds.
Obviously, everything also depends on the selected areas. But never as in this case, is it really possible to generalize the phenomenon by stating that summarily, throughout the United Kingdom it is more convenient to sign a lease agreement than a sales one.
A decisive element that moved the interest of potential buyers towards the first type mentioned above was also the increase and complexity of the financing conditions. A very rigorous (perhaps too much) bureaucracy, combined with a critical period like the one we are experiencing, has generated an unprecedented situation.
But what will be the implications for British real estate in the coming months? Will a lease continue to be preferred over a purchase agreement or will sooner or later return to the real estate investment represented by the purchase of a property?
Currently we cannot give an answer but if you want to stay updated on this and many other topics related to real estate, just keep following us!
We can say that the UK is currently going through a turning point. Inaugurated by Brexit, the new page in the history of this nation, is characterized by a notable collapse in rents. You haven't seen such low prices since 2014! According to statistics, at this historic moment it is cheaper to pay a monthly rent than a mortgage loan. Put simply, it pays to sign a lease rather than buying a new home.
But what figures are we talking about? In the first case, we start with an average rent of € 1,224 per month. In the second, however, the figure is around € 1,307 per month. A minimal difference that makes you think. It should also be remembered that the pandemic emergency had caused a drop in demand for rental homes, especially in London. Cause prices too high. Reason why, to avoid a real estate crisis and at the same time a devaluation of the properties already on the market, the cost of rents has decreased. And that's not all! Many real estate owners have decided to convert their homes for sale into homes for rent. This is because the demand for the latter has since increased. We can therefore say that the lifeline for many property owners was precisely this.
That of converting their homes for sale into properties to rent. But let's help with the numbers. Although there has been an increase of 7% on an annual basis in rents, this type of contract is still convenient compared to buying a house.
The difference (in monetary terms) in some cases even exceeds 200 pounds.
Obviously, everything also depends on the selected areas. But never as in this case, is it really possible to generalize the phenomenon by stating that summarily, throughout the United Kingdom it is more convenient to sign a lease agreement than a sales one.
A decisive element that moved the interest of potential buyers towards the first type mentioned above was also the increase and complexity of the financing conditions. A very rigorous (perhaps too much) bureaucracy, combined with a critical period like the one we are experiencing, has generated an unprecedented situation.
But what will be the implications for British real estate in the coming months? Will a lease continue to be preferred over a purchase agreement or will sooner or later return to the real estate investment represented by the purchase of a property?
Currently we cannot give an answer but if you want to stay updated on this and many other topics related to real estate, just keep following us!
