To rent or to buy? Sorry, but there’s no debate

I sometimes hear people say that being a renter comes with its own set of perks that homeowners don’t get to enjoy. Flexibility is often the main argument used to explain why renting is better than homeownership.

But the way I see it, renting is better than buying a home in the same way that holidaying in the UK means that I’ll avoid sunburn and currency exchanges.

I would still rather head abroad when I can afford to because to me it’s better than the alternative.

I don’t even consider comparing the downsides of going abroad (not that I don’t love a sojourn in the Welsh countryside). Similarly, the benefits of renting are so lacklustre it feels laughable to suggest anyone would choose to rent if they could afford to buy a home.

Read more: Should I buy or rent a house?

The flexibility of renting is a drawback as much as it is a perk

Let’s run through these so-called benefits. Flexibility, first. Yes, renting makes it easier to move compared to buying, but I’d argue the impermanent nature of renting is a drawback as much as it is a perk.

The average length of a tenancy is two years, according to property website Rightmove. The duration of a tenancy agreement is generally decided by the landlord.

While tenants can often choose to stay in a property for longer by extending their agreement, landlords may choose to hike rents between contracts. This can often push the existing tenants to look for a more affordable option.

Landlords can also decide to sell up, leaving their tenants with no option but to leave once their agreement is over.

I was fortunate enough to pay below the market average for a bedroom in north London last year. I would liked to have stayed on past the initial year-long tenancy, but my landlord and her husband decided they wanted to move back in after spending some time abroad. Naturally, I had no say in the matter and had to find somewhere else to live.

While homeowners can put their own stamp on their property and make it their long-term home, under a rental contract, decorating or renovating your home seems pointless. Why improve the property if you then have to move out?

As a renter, the feeling that my living arrangement is temporary has gnawed at me.

Read more: What are my rights as a tenant?

Buying a home is cheaper than renting in the long-term

I frequently hear homeowners moan about how tenants aren’t forced to fork out for repairs, while they have been hit by a hefty bill for a new boiler.

Yes, maintenance costs are real. Tradesperson directory Checkatrade recommends an annual budget of around 1% of a property’s value to put towards property maintenance costs. This comes to around £2,850, taking into account Halifax’s average house price data from February.

However, even with this amount factored in, homeownership is still cheaper than renting. Research by Halifax compared the average cost of renting a three-bedroom house to that of owning a similar property for a first-time buyer.

The study factored in mortgage payments, funding a deposit, household repairs and more. It concluded that renting would cost nearly £500 more a year, simply because monthly rents were so high.

Even if renting were a bit cheaper, it wouldn’t matter because renting means spending money you will never see again.

But when you buy a property and take on mortgage repayments, you could eventually own that asset outright.

Yes, a slice of your contributions will go towards covering mortgage interest. But this brings me to another point: comparing mortgage repayments to rent doesn’t make much sense. Yes, both are housing costs but the real cost of home ownership is the interest you pay.

The rest of a mortgage repayment goes towards owning the home outright (plus, if you want, you can sell it one day).

When you rent, you have nothing to show for it at the end of a tenancy. You’re simply funding a landlord’s home purchase.

Looking for a mortgage? Use our mortgage repayment calculator to work out how much you can afford.

Renters still need to worry about house prices

Some might point out that renters need not worry about house price movements – but this isn’t true.

As renters, seeing house prices rising makes homeownership seem continually out of reach.

Rising house prices also mean higher mortgage costs for landlords. This cost is passed onto tenants in the form of rent hikes.

Mortgage rates have shot up in the past year and this has had a knock-on impact on the rental market.

Average rents for new lets rose 11.1% in the year to March, according to property website Zoopla.

‘No-fault evictions’ are a real fear if you’re renting

Renters can be evicted at any time. This in my opinion undermines the notion that renting equates to some kind of utopian nomadic lifestyle.

If you own a house, you can have it repossessed if you fall behind on your mortgage payments. If you rent, you can be kicked out for any reason at all due to “no-fault evictions”.

The Renters’ Reform Bill will soon make this illegal. However, the government has said that landlords will be able to evict tenants for antisocial behaviour, which includes falling behind on rent.

Read more: Is now a good time to buy a house?

For many tenants, renting isn’t a choice but a necessity

Let’s face it – for many tenants, renting is not a choice but a necessity.

I would love to buy a home in the next few years. But unless a surprise inheritance lands in my bank account, I can’t – because it takes so long to save for a deposit.

Almost half of UK tenants would buy their current rental home if they could, according to Property Reporter research.

House price growth has outpaced growth in wages by more than 250% over the past 30 years, according to research firm Finder. So unless far more genuinely affordable homes are built, it will continue to be difficult for tenants to transition to homeowners.

One Twitter user’s take on the catch-22 sums up my feelings too: “It’s absolutely crazy to me that I can’t just go to the bank and get a mortgage for the same amount per month as my rent is. You’re fine to acknowledge I can pay this much to subsidise someone else but not to build up my own capital? Ridiculous economic entrapment.”

Many renters feel trapped: they can’t build a deposit when they’re spending all the money they would otherwise save on rent payments.

A median earner paying the median rent in England shells out 26% of their income doing so, according to figures from the Office for National Statistics. In London, this rises to an eye-watering 40% of average income.

It’s a vicious cycle and one that renters often find difficult to get out of.