Personal finance expert reveals the cheapest places to rent in the UK.

 

With mortgage rates soaring, the housing market and the cost-of-living crisis in the UK are the focus of many discussions and news articles at the moment.  Sadly, though, the cost of private renting has also been affected by rising costs. In the 12 months leading up to January 2023, private rental prices in the UK rose by 4.4%.

Alex Kosuth-Phillips, a personal finance expert at thimbl.com, looks into the advantages and disadvantages of both buying and renting, and reveals the top three cheapest places to rent in the UK.

“Rightmove have released data that shows the average monthly rent outside of London is £1,190. In March 2022, Lloyds Banking Group revealed that the average monthly mortgage payment in the rest of the UK was £759.

“However, it’s important to put these figures into perspective. While buying a property might seem cheaper in terms of monthly repayments, there are many alternative factors to think about.”

· Buying a house could be a financial investment.

· You can decorate the inside of your house however you like, without needing permission from anyone else.

· Once your mortgage is paid off, you will own your house outright.

· More security: you will not have to worry about being evicted by a landlord, although your home may be at risk if you do not keep up with your mortgage repayments.

· You will have taken your first step on the property ladder.

· If you’re a first-time buyer, you will need to save a deposit; this will vary depending on your mortgage lender. According to data released by Statistica, the average deposit amount in 2021-22 was 20%. However, some lenders may accept deposits as low as 5%. In May 2023, Skipton brought 0% deposits to the market. It’s important to do thorough research before you decide on a deposit amount.

· Buying comes with certain fees, including Stamp Duty, surveyors’ fees, valuation, and solicitors’ costs.

· You are responsible for the overall maintenance of the property - if your floorboards need replacing, or your windows start letting water in, you will need to fund these repairs. Decorating and furnishing the house are other further expenses to weigh up.

· Some rental properties come furnished, meaning you may not need to purchase items such as beds, sofas, and white goods (such as fridges).

· You’ll have more flexibility when it comes to moving, as you can negotiate the rent term with your landlord – this is handy if you’d like the freedom to move around and travel.

· If anything goes wrong with your property, your landlord may well be obliged to arrange and pay for the issue to be resolved. You should check your individual tenancy agreement to see exactly what you are responsible for and what the landlord is responsible for should something occur within your home.

· Many landlords ask for a deposit and at least one month’s rent upfront to secure the property.

· If your long-term goal is to buy a house, renting may make it harder to save, depending on your monthly outgoings.

· You might need to ask your landlord’s permission before decorating or making any changes to the property.

· Your rent might be increased once your lease has expired and is up for renewal, which, given the cost-of-living crisis in the UK, may lead to financial stress.

· Your landlord can choose to sell their property at any time. For further information regarding your private renting rights, head to the Gov.uk website.

“Your choice of where to live may be influenced by the cost of rent. 

“City centre rentals may be more in demand, and more expensive as a result. While being in the hub of the city might seem appealing, you can cut the cost of renting by opting to live in a nearby town or village. Of course, your commute will take longer as a result, and things such as train fares or petrol costs will need to be factored in.

“Kingston upon Hull comes out on top as one of the cheapest cities to rent in the UK.* Hull was named the UK City of Culture in 2017 and boasts interesting history, a beautiful marina, striking architecture, and legendary fish and chips! Not only is Hull surrounded by countryside, but it is also a short drive away from some gorgeous beaches, offering plenty of opportunities to explore. 

“Aberdeen also offers affordable rent in the UK. This Scottish city is home to a beach and is jam-packed with museums and galleries. Drive for just under an hour and you’ll hit the edge of Cairngorms National Park.

“Rounding off the top three cheapest cities to rent in the UK is Derby, with its prime location on the edge of the Peak District.”

-ENDS-

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Website: https://www.thimbl.com/

Alex Kosuth-Phillips - Personal Finance Expert at thimbl.

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When looking into cheap places to rent in the UK, we used data recorded by Numbeo, the world’s largest cost-of-living database, to determine the ordered rent index for every city in the UK. We then used home.co.uk to breakdown the average and median monthly rent payments. The information provided by home.co.uk was correct as of 1st July 2023.