Lorem ipsum dolor sit amet, consectetur adipiscing elit. Suspendisse felis sapien, dictum quis volutpat quis, efficitur egestas ex. Click here.

Benefits of buying a home vs renting

Benefits of buying a home vs renting
Image source: Getty Images.

The average monthly rent per household in the UK currently stands at £876 according to a rental market report from property search site Zoopla. On the other hand, the average monthly repayment on a mortgage is £723 according to Santander Mortgages. The fact that people spend so much on housing could explain why it is such a divisive topic. The eternal question is whether to buy or to rent — and it’s probably a question you have pondered yourself.

While renting makes sense for those wanting more flexibility and little or no responsibility for property maintenance, there are several distinct benefits of buying a home that make it an excellent option. Let’s take a look at some of them.

Stability and peace of mind

Buying a home gives you a sense of stability. When you own a home, you can rest easy knowing that you will not have to deal with your landlord changing the rules or kicking you out of your home because they want to sell the property, remodel it or bring in a new tenant. 

If you take out a mortgage to buy your home, as long as you make your payments, no one is going to interfere with your living. The monthly payments you make will go towards owning your own home rather than into the pockets of your landlord.


When you buy a home, you have the freedom to make changes to it as you wish. Whether it is repainting the walls, changing the landscaping, starting a plant garden or converting the garage into a painting studio, no one can prevent you from doing so. In your own home, you are also free to keep pets, something which many landlords frown upon and do not allow.

By buying a home, you get the freedom to live by your own rules and with minimal restrictions.

Value appreciation and equity building

In the absence of a major economic catastrophe, property value tends to increase every year. As this value increases and as you continue making mortgage payments, it’s possible to build equity in your home. Equity refers to the difference between what you owe on your home and what you could sell it for. It is the total value that is stored in the house.

If your home is worth £220,000 and you owe £180,000, then you’ve got £40,000 in equity. You can withdraw this equity and reinvest it, for example, into buying more property and therefore gain even more income. You might also decide to use the equity to fund your retirement. Either way, owning a house allows you to build equity – something that you will not be able to do while renting.

Other benefits

There are many other benefits of buying a home that are worth keeping in mind.

  • Buying a home can help your credit score and therefore increase your chances of getting credit in the future. When you make regular mortgage payments, you prove your creditworthiness to lenders. As a result, lenders may agree further loans or raise your credit limit with little hesitation.
  • Buying a home means that you have something that you can pass on to your children or other family members.
  • A home that you have bought and own gives you a greater sense of privacy than a rented one.
  • You still have flexibility. After buying a home, if your circumstances change, you can rent it out or sell it at any time.

Final word

Let’s be clear: buying and owning a home comes with several responsibilities, including making regular mortgage, home insurance, and property tax payments. You will also need to budget for repair and maintenance costs. However, these responsibilities are hugely outweighed by the potential benefits and enjoyment that comes with owning a home.

5 ‘must-see’ mortgage tips to help save money…

The mortgage application process can seem overwhelming, and down-right unaffordable at times. So where do you start if you’re looking to save money on your mortgage?

We’ve created this free report, “5 must-see tips to save money on a mortgage” to help you learn where the money-saving opportunities may be…

Just enter your email below for instant access to your free copy.

By checking this box and submitting your email address, you agree to The Motley Fool sending you emails with money tips, along with details of products and services that we think might interest you. You can unsubscribe from future emails at any time. You also consent to us processing your personal data in line with our privacy policy, and our cookie statement. For more information, including how we collect, store, and handle personal data, please read our Privacy Statement and Terms & Conditions.

Was this article helpful?

Some offers on The Motley Fool UK site are from our partners — it’s how we make money and keep this site going. But does that impact our ratings? Nope. Our commitment is to you. If a product isn’t any good, our rating will reflect that, or we won’t list it at all. Also, while we aim to feature the best products available, we do not review every product on the market. Learn more here. The statements above are The Motley Fool’s alone and have not been provided or endorsed by bank advertisers. John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. The Motley Fool UK has recommended Barclays, Hargreaves Lansdown, HSBC Holdings, Lloyds Banking Group, Mastercard, and Tesco.