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Lenders are set to cut rates on mortgages after turmoil from US President Donald Trump's tariff policy raised expectations that UK interest rates could be cut further this year.
Financial markets and economists are predicting that the Bank of England will cut interest rates by more than expected this year to avoid an economic downturn.
Trump’s tariff announcement might have created havoc in the stock market, but there could be a silver lining for UK mortgage borrowers. Interest rate expectations are falling as markets price in the potential economic damage from US tariffs, and the likelihood that the Bank of England will respond with interest rate cuts.
The market had been pricing in two interest rate cuts this year, but in short order that has now been ratcheted up to three, which would take the base rate to 3.75% by the end of 2025 (based on LSEG data). The two-year gilt yield has also fallen, from 4.2% to 3.9% since 1 April.
We may therefore see falling interest rates feeding into mortgage pricing before too long. Likewise the cash market may see fixed rates fading to reflect the new outlook for interest rates.
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Renting involves fewer upfront costs
When it comes to renting a property, there are fewer upfront costs required when compared to buying a property.
Both renting and buying a home involve saving for a deposit, but when purchasing a home, the deposit needed is much heftier and is usually around 5% to 15% of the price of the property, whereas when renting, you’d need a deposit worth one month’s rent.
In some cases, there are also alternative options to deposits when renting, so you may not need one at all.
Aside from a deposit, buying a home also comes with additional upfront costs such as Stamp Duty, estate agent fees, mortgage fees and conveyancing costs. On the other hand, these additional upfront costs aren’t needed when renting.
There are lower barriers to entry
Renting can often be a more achievable goal for home movers because of the lower barriers to entry when compared to the alternative of buying a property.
There are also fewer costs involved when actually living in a rental property. For example, if you own a property, you’re also completely responsible for any costs to repair damages or maintenance. On the other hand, when renting, these costs are typically the responsibility of the landlord who will need to arrange any repairs needed which eliminates the hassle from the tenant needing to organise them.
Renting can be flexible
If you choose to rent a property, there’s a sense of freedom that can come with it.
Buying a home is a big commitment and you have to be pretty sure that you’re set on staying in that property and location for the long term once you’ve set your roots there. On the other hand, when renting, contracts can come with more flexibility which means that if you get a job offer abroad, need to move across the country or just fancy trying out a new area in the city you’re already in, you’ll have the ability to do so more easily.
Make yourself available
If you’re serious about renting, it’s important to make yourself available to view properties as they become available especially in a competitive market.
The rental market can be incredibly fast paced, and in areas with high demand, properties can be snapped up pretty quickly after hitting the market. So, to be in with the best chance of securing the home you want, it’s important to stay flexible and make yourself available as much as possible to go and view properties as they become available.
Being able to make the appointment sooner rather than later when your letting agent gets in touch with you will mean you’ll get your foot in the door ahead of the competition and reduce the risk of missing out on a property you love.
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The advantages of renting
With the distinct lack of affordability in the sales market, over the course of the last decade more and more people are renting, up to a third of the population in urban centers.
Renting is an option of choice for many now because of the flexibility it offers: •
Long term tenancies start from as little as 6 months and you can move after this time if it doesn’t work for you. •
Being able to give notice to vacate lets you test relationships, whether that’s a new flat mate or a new partner •
Working lives have changed and people change job, including their location, more frequently and renting makes this easier. •
Professionally managed properties take the burden of maintenance away from you, giving you time to enjoy other things. You will have one point of contact and you don’t have the problem of finding contractors and overseeing works. •
The ongoing costs of maintenance, building service charges buildings insurance are covered by the landlord •
As you don’t have the additional costs that are covered by the owner it is much easier to predict your monthly costs. •
Whilst the costs of renting can be high, the cost of getting on the rental ladder is substantially cheaper than buying a property. •
Property sharing reduces the cost per person allowing you to move to an area you may have thought out of your budget. •
Rental properties have to conform to safety standards. •
Shorter term lets are great for those who are in between moves or moving out whilst they do renovations .
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We believe in keeping the process of renting your property out as simple and as stress free with the upmost efficiency.
As one of Exeter’s original independent rental agents we believe in traditional service with a personal touch and we are here to help with all of your questions, queries etc.
All of our staff members have a vast knowledge of the rental sector and are willing to help out where required face to face in our City Centre office.
We pride ourselves in keeping all of our properties compliant with the changes in the regulations that are being brought in to the rental sector on a regular basis.
All of our fees our transparent with no hidden costs there are no extras for certain things that are carried out.
We also have a Director who runs the maintenance department of Cooksleys and this is offered to the tenants on a 24 hour basis.
We have a range of contractors who can be called out to carry out minor repairs to refurbishments and also arrange all of the certificates required without no extra charge to you as the landlord.
We advertise the property on our Website, Facebook, X, in our City Centre Office, Rightmove and “On The Market” and we charge one of the lowest fees to potential tenants.
We offer two services fully managed or tenant find only as a small independent Estate Agent we are able to tailor the package accordingly to suit the individual needs of the landlord.
We are also always happy to meet landlords at potential investment properties.
We look forward to hearing from you
