To rent or to buy: the great debate that many have with themselves, their friends and family. What's best for you in the long term, how will this impact my current situation and is moving a 'want' or a 'need'?

New figures released from Zoopla earlier this month show it's cheaper to buy than to rent in Scotland at 5.6% mortgage rates. The average mortgage repayment in Scotland is £620 per month whereas the average rent cost is £748 per month - nearly a 19% difference!

The Office for National Statistics shows the UK annual private rental price percentage change rose to 5.3% in the 12 months to July 2023 and is at the highest it has been since early 2016.

The Office for National Statistics also states that, in their House Price Index (2023):

• Average UK house prices increased by 1.7% in the 12 months to June 2023 (provisional estimate), down from a revised 1.8% in May 2023.
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• The average UK house price was £288,000 in June 2023, which is £5,000 higher than 12 months ago, but £5,000 below the recent peak in November 2022.
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• Average house prices increased over the 12 months to June 2023, to £306,000 in England (1.9%), £213,000 in Wales (0.6%) and £174,000 in Northern Ireland (2.7%), while average Scotland house prices (£189,000) remained little changed (0.0%)
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• The average house price in Scotland remained little changed (0.0%) over the 12 months to June 2023, down from an increase of 1.9% in the 12 months to May 2023. The average house price in Scotland was £189,000 in June 2023.

Other benefits of owning your own home include, not certainly not limited to:

1. Investment. Buying a house is an investment in your future. Instead of paying rent and not building equity, you can build wealth through homeownership. When you rent, you're essentially paying someone else's mortgage. You don't build equity or own any part of the property.

2. Personalisation. When you own a home, you can customise it to your liking. Paint the walls, choose your furniture, or create a beautiful garden - the possibilities are endless! As a renter, you have limited control over the property. You may not be able to make major changes or renovations without permission from the landlord.

3. Potential for appreciation. Real estate values tend to appreciate over time. By owning a home, you have the potential to benefit from the increase in value, which can be a valuable asset in the long run. Rent prices can increase over time, making it harder to budget and plan for the future.

4. Tax benefits. Homeownership often comes with tax advantages. You may be eligible for deductions on mortgage interest, property taxes, and certain home-related expenses, which can help reduce your overall tax burden.

Everyone's situation is different, and renting can be a good choice depending on your circumstances. It's important to weigh the pros and cons and consider your long-term goals.

If you're considering a move to a Scotia home, you could receive free financial advice to ensure you're making the right decision for you. Our trusted Sales Team will support your home buying journey and be with you every step of the way.

For more information on any of our current or future developments, email info@scotia-homes.co.uk and a member of our in-house marketing team will pass on your enquiry to the relevant Sales Advisor.