Should you rent or buy in Essex?

Those looking for a place to live in Essex face the big decision: should you rent or buy? With average property prices rising, renting has become a necessity rather than a choice for many. However, for those who can get onto the property ladder, the question remains -is it better to buy?

To decide whether to rent or buy in Essex, it’s important to assess your finances, job stability, and lifestyle needs. Consider property prices, mortgage payments, and deposit costs. Renting offers flexibility, while buying builds equity. If house prices rise, buying may be a better investment.

Read on for Goldmanread’s helpful guide on buying and renting in Essex. For personalised advice from our expert mortgage brokers, please get in touch. We specialise in securing mortgages for all sorts of people in Essex, including first-time buyers.

Buying a home in Essex

The Essex property market is attractive to buyers due to its diversity, high standard of housing, strong transport links, and easy access to Central London. While house prices in Essex are generally more affordable than in some parts of the South East, they are still rising due to growing demand.

Where to move to in Essex

When choosing where to live in Essex, you’re spoilt for choice. The county offers a diverse range of properties to suit different buyers and renters in rural, urban and seaside locations.

If you love coastal living, Leigh-on-Sea offers a vibrant seafront and independent cafés. For a rural feel with great commuter links, consider Ingatestone or Felsted.

Families may prefer Chelmsford, which has top schools and plenty of green spaces, while young professionals often opt for Brentwood or Epping, which offers easy London access.

If affordability is key, areas like Basildon or Colchester offer great value. Unsure where to start? Local estate agents can provide insights tailored to your lifestyle and budget, helping you find the perfect home.

Read more about moving to Essex in our blog, What is the Housing Market Like in Essex?

Advantages of buying a home

The major advantage of buying your own home is clearly that the house belongs to you and not a landlord, providing you with security (as long as you keep up mortgage repayments). And, of course, one day in the future, you will actually own the property. In a county like Essex, with a healthy housing market, you could stand to do very well from a property investment.

• Long-term investment: Buying a property means you are investing in your future rather than paying a landlord.
• Stability: As long as you make your mortgage payments, you are secure in your home.
• Potential increase in value: If property prices continue to rise over the next few years, you could make a profit when you sell.
• Freedom to personalise: Homeowners can renovate and decorate their houses without needing landlord approval.

Challenges of buying a home

The most obvious challenge when buying a new home is the cost – average house prices in Essex are relatively high and rising. This means that unless you have a comfortable income, it may be difficult to get a mortgage.

But you shouldn’t despair. With the help of a mortgage broker, you can explore options like 95% loan-to-value (LTV) mortgages, guarantor mortgages and Joint Borrower Sole Proprietor (JBSP) mortgages. Government schemes like Shared Ownership can also make a property purchase more viable for many prospective homeowners.

• High costs: Average house prices in Essex mean you need a large deposit and a high enough income to secure a mortgage.
• Mortgage interest and monthly payments: With rising mortgage interest rates, your monthly payments could be more than rent.
• Maintenance costs: Unlike renting, where the landlord covers major repairs, homeowners must cover the costs themselves.

Renting a home in Essex

For those prohibited from buying due to rising house prices or those who simply prefer more flexibility, renting may be a better option. The buy-to-let market in Essex is diverse, offering many rental opportunities for families, students and professionals.

Advantages of renting

Aside from the fact that you don’t need a large deposit, renting is also easier to move into and allows you to be less solely responsible for the property’s upkeep.

• Flexibility: Renting allows you to move easily for jobs or a change in personal situation.
• Lower upfront costs: You don’t need a large deposit – only the first month’s rent and a deposit.
• No maintenance costs: Repairs and major house upkeep expenses are handled by the landlord.

Challenges of renting

Rental prices have surged since the Covid pandemic, increasing income requirements for prospective tenants, making affordability a growing concern, similar to mortgage eligibility. Also, with renting, there is also the risk of eviction, though new tenant protections are expected in 2025.

• Lack of stability: If your landlord decides to sell the property, you could be asked to leave at short notice.
• Increasing rental prices: Prospective tenants face rising monthly payments due to increased demand.
• No return on investment: Unlike buying, renting doesn’t build equity or provide any future financial return.

What to consider when deciding between renting and buying property

There are a number of factors to take into account when deciding to either rent or buy in the Essex housing market.

Essex property prices

The Essex housing market remains competitive, with property prices impacted by its location and excellent transport links. Proximity to Central London, Stansted Airport, and London Southend Airport makes Essex an attractive property investment area.

Current housing market trends

Consider whether property prices will continue to rise over the next few years. To get an idea, look at property price reports, consult estate agents, review government housing data, track mortgage interest rates, and follow local market news.

Your lifestyle

Your income, job stability, and lifestyle are crucial. If you need flexibility or anticipate moving soon, renting is the better option. If you want stability and can afford the mortgage payments, buying is ideal.

Long term goals

If you plan to invest in a home for your future, then buying is the right decision. Consider factors like schools, local authority services, and the potential to sell at a higher value later.

Are you ready to start your home-buying journey in Essex?

At Goldmanread, we specialise in arranging mortgages for buyers in Essex. Whether you’re a first-time buyer, moving up the property ladder, or an investor looking for a buy-to-let mortgage, we can help you navigate the process.

Our expert mortgage brokers can provide personalised guidance on securing the best mortgage interest rates, understanding monthly payments, and finding the right investment in the Essex property market.

Ready to take the next step? Contact Goldmanread today for expert mortgage advice tailored to your needs.