Ah, the dream of homeownership. It’s all about having a place to call your own.
But while some people can’t wait to get both feet on the property ladder, you might be perfectly happy renting. And why not? Renting certainly has its perks too.
However, before you renew your lease next time, it’s worth making sure that renting’s still right for you. So, let’s quickly run through the positives and negatives.
We’ll balance the emotional pull of owning your own pad versus the freedom renting gives you. We’ll also weigh up the hassles and benefits of both options.
Finally, we’ll look at the costs. After all, whatever you decide to do, the money’s got to be right, right?
Listen to your heart
Owning a home gives you a warm feeling of stability and security. You’ll finally stop borrowing where you live. The four walls around you will be yours.
What’s more, you’ll be the boss. You can redecorate whenever you like, in whatever style you like, without needing a landlord’s permission. You can even renovate or extend your home (as long as you get the right permissions).
But there’s a flipside: homeownership is a big commitment. And it might feel scary. You’ll be borrowing a lot of money and it could take 25 years (or more) to pay it back.
Renting, on the other hand, doesn’t have the same stresses. Although you won’t have the same relationship with your home, either.
Freedom!
Renting’s great if you want maximum flexibility. You can move fairly easily and embrace new chapters in life without worrying about the strings of homeownership. So it’s perfect if you’re single, fancy-free or freelancing.
Although it’s possible to sell a home too – homeownership isn’t a life sentence! – it takes time to find a buyer and organise surveys and conveyancing. In fact, selling takes around 25 weeks on average according to Zoopla in 2025.
It’s important to remember, however, that homeownership does gives you a different form of freedom. You can cut ties with landlords, build equity in your home, and gradually pay your mortgage back.
Then, one day, you can finally say goodbye to monthly payments for good.
The hard yards
Buying and selling homes can be hard work. You could be gazumped, gazundered, or both! But renting isn’t exactly a picnic either. Competition to find a place can be fierce, especially in popular suburbs, and you might end up in a nerve-jangling bidding war.
Renting definitely has the edge when it comes to home maintenance, though.
As a tenant, you can sort out a washed-up washing machine or burned-out boiler by simply phoning the landlord. It’s their responsibility. But if you’re a homeowner, the only person who’s going to fix things is you. And this can be a hassle.
But there is a silver lining: you might actually enjoy looking after your home in time. If you love it enough, will caring for it be that much of a chore?
Money, money, money
Now for the big one. Are your finances better suited to renting or buying? And what are the long-term impacts of both?
You’ll often hear renters complain that they’re paying off their landlord’s mortgage. If you buy your own home, on the other hand, you slowly pay off your own mortgage and build up your ‘equity’. This is how much of your home you own.
However, it’s worth remembering that house prices can go both up and down. So, if your home’s increasing in value then your equity will increase faster.
But if its value’s going down, you could get stuck in ‘negative equity’. This is when you owe more than your home’s worth.
Up-front costs
Investing in a home is a decision for the long-term. But there are up-front costs to consider too.
The biggest, of course, is the deposit. This is usually around 5-10% of your home’s value (although it could be more). Whether you’re buying a studio in Skegness or a mansion in Mayfair, this means parting with several thousand pounds.
There are lots of other costs too. For example, you’ll need to pay stamp duty, legal fees, and arrange a survey. So, it’s worth checking out if one of the government’s affordable homeownership schemes could save you money.
Renting, however, is totally different. You’ll only pay a tenancy deposit (usually just a few weeks’ rent) at the beginning. And you could get this back when you move out. The problem, of course, is you’ll never pay off your home.
Budgeting
Month-to-month budgeting is slightly easier when you’re a tenant. You only have to think about meeting your rent, council tax and utility bills.
Homeowners don’t have this luxury because repairs and maintenance can crop up unexpectedly. This can cost hundreds or thousands of hard-earned quid.
Buying your home does have an advantage though: you can fix your monthly mortgage payments for several years. Renters, meanwhile, know their rent could go up every year.
The problem, however, is that your mortgage payments could go up quite a lot when your fixed term ends. Rents have gone up in recent times but so have borrowing rates.
Which brings us nicely onto our final factor…
Risk
Don’t forget that homebuying is an investment. And like all investments, it’s something of a risk. But the good news is that the average price of UK homes has gone up lots in recent decades according to Land Registry data:
- £78,000 in January 2000
- £154,000 in 2010
- £214,000 in 2020
- £273,000 now.
Although prices have sometimes dipped in between times, people who’ve invested in property have done well over the years. We can’t promise this will continue in the future though. And interest rates might rise too.
The risk with renting, of course, is that your landlord might decide that they want to sell the home or move in themselves. You might end up in a dispute about your deposit as well.
To buy or not to buy?
So, it’s decision time. Will you stick with renting or hop hopefully onto the property ladder?
Buying a home can be one of the most exciting things you ever do. But it’s important to be in the right place first, both financially and in life.
Renting, on the other hand, gives you flexibility without some of the risks of homeownership. But you won’t get the rewards of owning your own home either.
It’s important to stress that everyone’s different too. Some people wait until they’re married or have a family to buy a home. Others buy their first pad when they’re single or just starting out on their career.
There’s no right or wrong answer. You just need to ask yourself the right questions first.
- Have you found an area where you’d like to settle down?
- Can you afford a deposit?
- Do you want the freedom to move easily?
- Are you ready for the responsibility of homeownership?
- Do you want to decorate or renovate your home?
- Does paying monthly without building up equity bother you?
This content was accurate when published on 05/11/25.
If you’re ready to buy your first home, you’ll find saving tips and a moving checklist in My Home Manager. Or you can learn about our mortgages and get a decision in principle on our website.