Beware of the rental malaise

Often you will read about the 'rental trap' where those who can't afford to buy their first home get trapped in the rental market. However agents across the country have noticed people getting stuck in between moves too. They plan on renting for a few months, until a home that they really like becomes available. However, a few months can turn into years.

It is easy to see why people rent before they buy. On the plus side, there is no chain to worry about and the work that comes with selling your own home is already tied up and complete. Overall it makes the whole process of buying a home less stressful and less time consuming. 

However on the downside house hunters can become too selective when there is little pressure to move. If you do not choose to move into rented accommodation when you sell, you are forced to buy somewhere else, otherwise you would have nowhere to live. Renters are without this pressure and they often become more judgmental and less committed when viewing a prospective home which makes them more likely to pull out of a deal.

Michael Fiddes, Head of Agency at Strutt & Parker comments: "When moving into a rented home, it is important to establish how long you would like to stay there. Obviously those renting on a long term basis will stay in the property for a certain amount of time. However there is a danger that those looking to buy quickly end up renting for long periods. It sounds simple, but remembering that you are renting on a short term basis can help avoid becoming too comfortable."

One way of helping to avoid the problem is to set goals and timelines for your next move. If there is little urgency or motivation to move you are more likely to be staying in a rented home for longer than you had hoped. These steps can help avoid complacency in your search for a home.

Fiddes adds: "In this market there are more people who have sold, are now renting and ready to move when a property becomes available. Many renters are under the illusion that they are in a unique position and ahead of their rival bidders when they find a property. The reality is the rental market is well populated with not only first-time buyers who can't afford a home, but second and third time buyers too, making it more competitive".