Pros and cons of renting

"An Englishman's home is his castle", according to the old saying, reflecting the cultural importance of the home as a symbol of independence and security. For the majority of Britons, that still means owning the property they live in.

"If there's such a thing as a British dream, it's to own the roof over your head," wrote French journalist Agnès Poirier for The Guardian back in 2016 – "and then sell it for a stonking profit".

Currently, around two-thirds of UK households are owned by the occupier, either with a mortgage or outright. The remaining third rent their property – but owning still remains the ultimate aim for most, with a 2023 survey for the National Residential Landlords Association finding that 76% of tenants want to buy at some point.

Pro: low commitment

While the risk of a large rent increase or even eviction always hangs over tenants, the lack of permanence in a rental agreement cuts both ways. For younger people looking for the freedom to pursue study or travel opportunities, or those whose careers might require relocation, a fixed-term or rolling contract is often a far more attractive prospect than the financial and legal commitment of owning property.

Con: insecurity

Although tenants do have some legal protections, a renter's housing security is dependent to a large degree on their landlord, who can decide to increase the rent or end the tenancy. Critics of the current housing system say that much of this instability could be avoided if the UK adopted more tenant-friendly laws similar to those seen in countries like France and Germany, where eviction is only permitted in limited circumstances and rent rises are subject to strict controls.

In England, a Renters (Reform) Bill that would have ended no-fault evictions is among a raft of legislation shelved by the dissolution of parliament. Labour has pledged to end no-fault evictions and introduce "rent stabilisation" measures if it is elected.

Pro: affordability

The cost of renting versus owning a property is relatively small – just £27 per month, according to research by Halifax published in the FT Adviser . However, where affordability really becomes an issue is when it comes to accumulating a deposit . Whereas a typical tenancy agreement might ask for a deposit of one month's rent, as of February 2024 the average house deposit for a first-time buyer had risen to £53,414. With the prospect of saving tens of thousands of pounds out of reach for many, renting remains the most affordable option.

Con: restrictions

Not being responsible for repairs and maintenance work is one attractive feature of renting, but the flip side is that tenants are often subject to limitations on how they can use their home. For instance, landlords can impose restrictions on who can live in the property, prohibit tenants from keeping pets, or bar them from making any significant alterations to the decor.

Scotland has already taken steps to give renters more power, including proposals in the Housing Bill currently under consideration at Holyrood which would ensure tenants are allowed to "keep pets and decorate their homes", said the BBC .

Pro: convenience

Home maintenance can be a stressful and costly headache for homeowners, especially if major problems arise. In a rented property, arranging for repairs, overseeing the work and paying for it is the responsibility of the owner rather than the tenant. Generally, a tenant is only required to treat the property with reasonable care and report any issues to their landlord promptly.

Con: no equity

While renting might be more affordable than buying, the downside is that renters are not accumulating any equity in the property – in other words, they are paying someone else's mortgage.

Property is considered one of the most reliable investments you can make, as prices tend to grow reliably over time. So those who can afford to buy but choose to rent are missing out on an asset that could become very valuable – particularly in later life. "People are increasingly looking at their main home as a way of supplementing their pension provision ," Lucian Cook, residential research director at Savills estate agents, told The Financial Times .