Could short-term renting to be chain-free help you find the right home?
The property market is moving fast. Popular properties are being snapped up within days of going on the market. With so much competition, being chain-free could help you secure the home you want and speed up the homebuying process. If you’re already a homeowner, is it worth renting a property short-term to break the chain?
According to Rightmove, more homeowners are choosing to sell up and move into a rental property so they’re in a stronger position to secure their dream home.
One in five (21%) of properties listed on the website are now chain-free, compared to 15% last year. While some of these will be due to landlords or second homeowners selling, it does indicate that some families are choosing to temporarily rent a home. The shift was most marked in London, where chain-free homes have increased from 12% in 2020 to 21% in 2021.
The number of potential buyers searching for “no chain” properties has increased by 72%. Being chain-free could help you whether you’re buying or selling.
Why being chain-free can help home movers
A property chain links home buyers and sellers together, so a purchase or sale is dependent on another transaction. As a result, one person pulling out of a chain can have a significant impact on others. Being chain-free means your sale or purchase does not rely on another. As a result, it puts you in an attractive position.
Being chain-free means there’s a lower risk of delays and failed sales. It can mean you’re in a better position to negotiate, especially if the seller wants a quick sale. However, most homebuyers need to sell their own home to be able to purchase another. Renting a property in the short term can provide a solution, but there are drawbacks to consider too.
The benefits of short-term renting to be chain-free
Take advantage of high sale prices now
House prices have reached a record high as demand outstrips supply in many parts of the country. In the last year, house prices have increased by 8.2%, with the average home now worth £258,204, the Halifax House Price Index finds. It’s impossible to know how average house prices will change in the coming months, but selling to become chain-free means you can take advantage of the current high without needing to commit to a new home straight away.
Give yourself time to find the right home for you
Finding a new home can be stressful, especially if you’re facing pressure from your buyer. Timeframes, when you’re part of a chain, may mean that you need to find a new home quickly. It can mean you end up settling for something that isn’t right for you. Being chain-free can provide the time you need and an opportunity to wait for the right property.
Try a new area or type of home
If you’re thinking about moving to a new area or even a different type of property, committing to buying a home can be difficult. Short-term renting allows you to try before you buy to see if it’s the right decision for you.
Potentially speed up the process
If you want to sell your home quickly, being chain-free can speed up the process. However, keep in mind that your buyer may be part of a chain and other factors can cause delays too.
The drawbacks of short-term renting to be chain-free
It can cost you more
Renting in the short term means you’ll need to factor in additional costs. As well as rent, you may need to consider the cost of storing some of your items and the additional expense of moving home twice rather than once. In some cases, buying and selling a property through the same solicitor can mean you receive a discount, which may be lost if you rent in the short term.
It can be more stressful
Moving home is often cited as one of the most stressful experiences. By renting short-term, you’ll be doing it twice, potentially in a short space of time. While it can afford you the time you need to look for the right home, it’s a solution that can create stress in other areas of your life.
Short-term renting can create uncertainty
As you won’t have found a new home to buy and there’s no guarantee when the right one will be available, renting short-term does come with uncertainty. If you’ve only budgeted to rent for a certain period, it can create additional stress further down the line if you’re unable to find the property you’re looking for.
If you’re moving home, whether you plan to rent or not, and will need a mortgage, it’s important to find the right deal for you. It could help you save money in the long run and provide flexibility if you need it. Please give us a call if you’d like to discuss your mortgage needs.
Please note: This blog is for general information only and does not constitute advice. The information is aimed at retail clients only.
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