People have always managed to adapt to the current situation in which they found themselves. Regardless of the shifting elements to cause new adaptations, with the passage of time anyone can find the perfect solution through which to survive. With the recent decline of the economy, it was visible that more people had to adapt to new situations in a variety of domains. One of these is the real estate market. The financial instability brought many problems for this domains, as the prices fluctuated between high and low points. The point reached now in terms of houses is probably viewed differently by all people. This is because the actual effect of the prices of the houses reflects in a way on those who have money and in another way on those who simply do not have anything. Therefore, the initiation of a new trend, that of renting houses, was no surprise to anyone. People adapted to the impossibility of paying for houses and of obtaining mortgages, by deciding to rent houses instead.
With the new trend of renting houses come numerous modifications to the usual ways we were used to. For example, people are bound to move a lot more now that they do not have the stability of their very own property houses. There are advantages and disadvantages which surface from the practice of renting houses. The advantages are that anyone can have a home without needing massive amounts of money. They can change the place they live in when they want and how they want. The disadvantage of not actually owning a property is shadowed by the many more benefits to surface out of renting. Next to the fact that the financial power of most people is really low, these negative aspects and issues tend to be ignored by many, as there is nothing else better. This new trend of renting houses is not for everyone and most will deny its existence. However, it is a trend created by young independent people, who have new mentalities and who will create whole new concepts around the idea of living.
First-time buyers should really take the time to do some research, because there are many useful things that they could find out. For example, not many people believe that it is better to buy a property than to rent one, but this is actually possible. Property prices have dropped dramatically due to the financial crisis that we are facing, and the interest rates have lowered as well. These economical changes make it possible for average buyers to enjoy a great property and to be able to call it their own.
In the past, the costs of renting did not even compare to the costs of buying, as they were significantly lower, so most people were not even considering purchasing a home. The UK real estate market has changed though, and now, due to the fact that mortgage payments are now cheaper, more people can afford to buy. It is true that there are many first-time buyers who do not have the financial means to get a mortgage, so they are forced to rent, because banks and mortgage lenders usually ask for a 15% deposit. This makes it hard for people who do not have any money saved, because even though the mortgage payments will be lower, the fact that they do not have the money for the deposit prevents them from buying a property. However, renting is no better, either, because in a few years, you will have spent more money on rent that you could have saved for the deposit of a property. The real estate market is beginning to understand these problems, so in order not to get stuck, the property prices are slowly, but constantly dropping.
Many successful economists are stating that buying a property for the first time is the best thing you could do, because the economic climate is in your favor. Since 2008, house prices have declined substantially and the mortgage rates have lowered. Landlords however have taken advantage of the fact that many people were stuck, so they raised the renting costs. They knew that people who did not have the money to buy a property were forced to rent, so they used that in their favor. With the housing market being what it is, it is better thus to buy than to rent, because in this way you will be able to save money and to enjoy living in your own home. And who does not want that?
Although the financial crisis is not yet gone, in the most recent months the economy has shown signs of strengthening. Even if, there are many ways in which a individual’s financial status can be affected by the crisis, there are still areas in which people can take advantage of some of the lowest costs. An example is the real estate market. Purchasing a property in the United Kingdom has never been more affordable than now. Actually, buying a home is not only a great idea because prices have reached their lowest level, but also because rents have very much risen in the past months. Renting a house has become something that people cannot afford paying for any longer.
A new research has indicated that rental prices have grown very fast since August 2010. As statistics indicate, the average weekly rent was set for this month at about £713, which also means an increased level compared with the previous highest price of £705. However, although rents have not grown all over the country, the West and East Midlands have actually shown a decrease of the rent prices with about 0.4 percent. The UK city in which rents have grown faster and with the highest amounts is London. Although properties in London, and mostly in the center of the city, are still wanted and searched by numerous people, not only the prices when it comes to purchasing a home here are the highest ones in the UK, but the same thing can be said about prices when it comes to rent costs. Statistics indicate that rents have raised with 6.6 percent in London, being the largest annual growth shown for the country.
During last year, all over the UK, rents level has risen. The two exceptions are Yorkshire and Humber, where rent costs have decreased with about 0.5 percent. If for people who have houses to put for rent, the prices evolution is a favorable one, for individuals who have to pay for rent, finding accommodation conditions this way is no longer an affordable choice. Most people have to wait for long until being able to buy a first home, but since prices for purchasing houses have decreased, the way renting and buying homes market evolves may get a whole new approach, as buying will become more affordable.