"I say so because if you look at the interest paid over a 25-year term and the final value of your home, there needs to have been a significant uplift for it to make a return better than global equities.
“Renting removes the hassle of big decisions around build and essential contents, allowing you to focus on getting your furniture to make it your home. For this strategy to be effective throughout your life, the additional savings need to be invested. If this is done tax efficiently you can minimise your inheritance tax liability as well.”
He adds that IFAs should support their clients in adapting to the changing landscape by helping them decide whether it makes sense to rent or buy.
“Advisers can help clients decide whether it makes sense to rent or buy. In the case of the former they must help clients devise a cohesive long-term strategy that ensures they enjoy a comfortable retirement, just as they would had they owned their own home.”
Aamina Zafar is a freelance journalist
