Content to Rent

THE rental market currently stands at an unprecedented high level as prospective buyers turn towards the more flexible option of renting a property in these difficult economic times.

Currently the average first time buyer needs £28,770 for a deposit to secure a property. In 2000, that figure was £9,865. This inflation, and continuing worldwide economic uncertainty, means more and more people are abandoning plans to become homeowners and instead choosing to rent property. The aspiration to own your own home remains high, but there are signs that expectations may be moderating, especially among younger people.

Ian Potter, operations manager of the Association of Residential Letting Agents (ARLA), said: "Our research suggests that, while more and more people seem to be renting post-recession, for many this is through need rather than choice - a trend that will likely continue as long as the demand for homes outstrips supply.

"Further, with the average age to buy a first home now reported to be 35, it's also possible that renting will become the norm for more people than ever before.”

The number of loans for house purchase has more than halved between 2007 and 2010 making it far more difficult for the younger generation to get onto the property market. New figures show 67 per cent of private renting tenants are under the age of 35. According to Holmfirth-based Applegate Lettings, a large number of their clients were young adults looking for somewhere they can call ‘home’, rather than a short term let.

Amy Wray, managing director of Applegate Lettings said, “We have seen a significant increase in letting homes to younger people, who are excellent tenants, but just can’t afford to buy at this time. This has been the case for a large majority of homes in the last year.” Applegate currently have a wide range of properties in the Holme Valley and Huddersfield area for both families and single tenants seeking short and longer term rental homes. “Locally, the rental market has been extremely strong and this trend looks set to continue,” said Amy.

Renting certainly has its positive side – flexibility to move around at short notice, due to work or personal reasons or to ‘try’ an area before committing to it; freedom from problems such as negative equity as you are responsible for the rent and not monthly repayments on bigger loans or upkeep; cheaper insurance than a home owner, and the rent is usually less than mortgage payments.

According to Ian Potter of ARLA, “What is important for both 'reluctant tenants' and those who rent by choice, is to conduct thorough research before making a move. While there are many benefits to renting or letting a property, things can and do go wrong.”

Horror stories from those who use non industry-approved agents who operate without any indemnity insurance shows the need for would-be landlords and tenants to use agents they can be sure can provide the best for them.

Applegate Lettings, one of the few fully qualified ARLA accredited letting agents in the local area, are determined that clients should be fully satisfied with their service – and point to the fact that 65 per cent of their new business comes from referrals rather than advertising. Using such fully insured and industry-recognised agents brings with it a hassle-free quality service to its clients.

There are few more beautiful places to live than the Holme Valley, whether renting or buying a property. That perhaps is the one certainty in an era of financial and housing uncertainty.