The housing market has been up and down to say the least over the course of recent years.
Indeed, many have had to question the issue of how long it would take them to own a home, if they manage to at all. When you consider that this used to be pretty much a foregone conclusion, it shows just how much things have changed.
Many have had to rent somewhere to live which, financially speaking, isn’t the most ideal arrangement. Yes, it does allow you more flexibility in terms of moving around for work etc, but it also means you have nothing to show for the hundreds of pounds a month you pay.
What’s more, it is fairly detrimental to saving for a house in the future because the lion’s share of your income is going straight into the pocket of your landlord, rather than being put towards a deposit. This is not ideal and it seems that people in the UK still want to own a home as much as they ever have.
Research carried out by the Clydesdale and Yorkshire Banks have shown that Brits still aspire to be homeowners with the main reason being the financial benefits that it brings, as opposed to renting. The survey garnered the opinions of new homeowners and potential first time buyers across the UK with results showing that around a third (32 per cent) of people believe it makes more financial sense to buy their own property.
Around a fifth said it works out cheaper than renting when everything is taking into consideration but there were other reasons highlighted by respondents. Twenty-three per cent of people said that, rather than it being a better option in the immediate term, buying a house is actually an investment for the future.
The survey also showed that there remains a trend for renting before buying, despite the problems this throws up in relation to saving for a deposit, with 56 per cent saying that they rented before buying. However, seven per cent said they needed to move back in with their parents before buying in order to save up to purchase their new home.
Andrew Pearce, retail director for Clydesdale Bank, said: “We understand how difficult it can be to take the first step onto the property ladder and are one of the few lenders still offering 95 per cent mortgages to support first time buyers.”
There were also a number of regional variations in terms of renting, buying and people’s views on both.
Those in the south-east of England were found to be the biggest fans of buying rather than renting, with 42 per cent saying that it makes good financial sense, compared to just 25 per cent in the east of the country.
Another popular area that the survey looked at was how much the allure of being a homeowner, financial advantages aside, was, with the Welsh found to be most keen on this.
More than a third (36 per cent) of Welsh respondents said they have the desire to be a homeowner, compared to just eight per cent of Londoners and nine per cent of those in Scotland.
For generations, owning one’s own house has almost come as standard and it appears that this feeling of having a home to call your own has been passed on, despite the trying financial circumstances that many people are having to deal with.
Elsewhere across the UK, a third of those in the Midlands looked at a house as an investment for the future, compared to just nine per cent of the Welsh respondents.
There are undoubtedly financial benefits to owning a house rather than renting one.
Deposits can, on occasions, be cheaper than renting and you will end up with something that you can call your own and that can act as equity further down the line.
However, it’s essential that you are able to not only pay the deposit to begin with but also that your mortgage payments are sustainable in the long run.
Plan a careful budget before meeting your mortgage provider and ensure you aren’t paying out a dangerous amount each month, otherwise you could be storing up serious debt management issues further down the line.