Why don’t people understand that not everyone wants to buy a house?

Depends on your spending / saving / timeframes really. If you just want to enjoy the lifestyle for a few years, renting makes sense.

Whatever happens you need £X to keep a roof over your head. If you own the flat, you are accruing equity in a property - if you rent, you aren’t.

So while you can invest your capital elsewhere for better returns - the value of that capital suddenly becomes quite important in terms of the possible return you get. Not spending £3k a month on a mortgage doesn’t leave you with £3k a month to invest - because you’re still renting… probably at £3k a month.

I appreciate not fancying buying a leasehold flat, high service charge, potentially difficult to sell on etc. You don’t get a lot for your money in zone one…

I understand, but obviously you got great salaries and self faith you are always going to be employed so rent money is just a small portion of your income.

I work part time nmw and am glad my accommodation is 50 percent and over paid, humble as it is.

We cut our cloth accordingly. As long each and every human isn't homeless, that's good

So for zone 3, 11% down on last year, 10% on the peak of 2022

Cant seem to find easy stats for the other zones

On the other hand, over the last 10 years, on average over that period, prices in zones 1 and 2 have risen by 8% a year, year on year, that takes into account the drops as well so the rises in other years are astronomical it would seem

You have to look at things over the long term really

I will buy some day and I am saving for a deposit. However, I like renting. I wouldn't be able to buy my current flat. I would either have to get a significantly older and smaller place or move out of the city center. For now, I want to live in the city. Once I'm ready to move to a quieter area, I'll buy.

I don't really understand this. Rent is MORE expensive than a mortgage for the London house I bought last year (with high mortgage interest rates and a small deposit).

Also before I reach retirement age I'll have paid it off and be able to live here for free.

A renter in my part of London would be paying more NOW to live in this exact house and more at retirement age when I'll be paying nothing.

How does it make more sense to rent? You need to live somewhere. Your investments would have to be giving a massive return in order to guarantee your rent for the entire of old age when you're no longer working. Also rent will likely be way higher by that point...

I'm genuinely curious how it works out cheaper long term for you to rent @tarrantulla can you explain? (Not being goody, genuinely curious)

Yes I think generally speaking, a 5 or 10 year period tends not to show a drop, or stagnant. I think there have been periods or locations in the UK where thats not the case but overall it generally is.

Because most people know how precarious it is to rely on the whims of landlords.

It is often cheaper as well to pay a mortgage rather than the ridiculously high rents we have in this country.

I can understand people who are tenants of councils and housing associations not needing to buy because their tenancies are secure but private renting is not really a good option long term in this country. Too much greed and too many dodgy landlords.

Zone 1, even worse, 25% down. That is a crash surely? I dont know the definition of a crash

https://www.rightmove.co.uk/house-prices/zone-1-93817.html

There would have to be some catastrophic global event for prices in the capital to crash as prices in most major capitals are equally astronomical

surely you don’t base your financial planning on possible global catastrophic events. If there was one, all investments would be screwed so you’d still be better off owning bricks and mortar than a then no. Existent share capital

This is only sensible if you’ve got a very secure rental such as a council
tenancy and know for sure you will never be asked to move

and if you have an absolutely massive pension pot

and if you’ve truly identified “several different asset classes” that will appreciate as much as london property with as minimal risk

People say its a waste of money because it IS a waste of money.

You're still paying a mortgage. It's just someone else's mortgage. Someone who could kick you out with a few months notice.

Here it is in fact, down 15% from 2022 and down 16% frm last year.

Which means prices over the past few years went up, then down again

If the average is around 900k now, and anotther drop next year of 15%, means that same average price would be around over 100k less, quite a significant difference in borrowing

Zone 2

https://www.rightmove.co.uk/house-prices/zone-2-93814.html

I guess people that think a crash can’t or won’t happen are either very young, or haven’t seen it happen before. I have seen and been victim of property crashes in early 90’s and 08. Property goes in cycles. In this economic climate anything is possible, although I really hope the market doesn’t crash, it causes a lot of misery for people. Overall property always rises long term, renters just line landlords pocket, have no long term security as a private tenant. Nothing is without risk, but buying over renting is the option I prefer.

Hmm it depends. If you are planning to work all across the world for different stints and no clue where you will end up there's not much point buying

What are the examples at the moment of price drops in zones 1 and 2?

Oh it will ... Violent crime is rising at such a huge rate .. Uncontrolled immigration.. London is becoming a place no one wants to go to .. Its inevitable.

I think a lot is about the worry of managing to pay rent on a pension. Buying a house, if you can, just seems financially prudent.

Of course I understand there are many people who can't, and we're lucky to have been able to. But I don't really understand just preferring not to buy.

I wouldn’t say renting means you have more money than other people, it usually just means you’re being forced to spend more money for the roof currently over your head so you never get the chance to save a deposit, or you have bad credit so wouldn’t be approved for a mortgage.

Unless you are able to have a deposit saved before you start renting it is so difficult to save one once you’re paying rent & bills. I have friends stuck in that cycle now who were keen to move out ASAP once they were old enough and the consequence of renting from day 1 means they don’t have a deposit saved and because they’re now paying rent they can’t save one.

You are not renting from the bank, that shows some economic flawed thinking

And even if the interest were more than the rent, you're still paying for something that eventually gets paid off, with rent that never happens.

Unless people are needing to move regularly for work or other reasons or literally cannot get a mortgage buying makes more sense over the longer term. Problem is people think very short term for themselves.

I have rented as much as I bought, and frankly no one around me cared a bit.

It's more people renting who seem to have a massive chip on their shoulder, which is weird. It cost so much to rent - even today - that it only means you have more money than other people.

It's ridiculously expensive to rent.

Firstly we have lower home ownership levels than lots of countries so this isnt the case

Secondly for those who do rent in other countries, some of those countries have very different legal systems and rental systems to the UK, meaning its more stable and not as expensive as the UK so there is more comfort with rentals.

In this country you never know if your property will be sold, if you're going to be given notice, you dont have certainty that your child can continue at their school or you retain a consistent health team around you becuase you never know if you're going to have to move and if so, whether you'll be able to rent again in the same area.

It's not though in the long term. Renting you are paying and never have an asset.

Mortgaging is a borrowing against an asset that hopefully appreciating and that you will own outright.

I'd hate to be a pensioner and relying on the rental market

people have been saying this for years - it won't happen

Buying a house is essentially renting from a bank. Interest on a mortgage is comparable to rent so saying renting is a waste of money just isn't true as in some cases the Interest would be more than rent.

We bought as renting would be 4 times the mortgage Interest. We also have no need to change location.

I love having my own property and wasn't keen on renting.

That’s what you’re doing while renting anyway- paying someone else’s mortgage, including the interest to the bank, with some extra on top for their profit.

The only time renting makes sense really is if you’re not planning on staying long. If you’re there long term then you’re better off building your own equity than someone else’s.