With rising interest rates and fears of a house price crash, some home owners have decided to sell up and rent. Could they have the right idea? Is renting the safer option?

The Sell To Rent (STR) phenomenon is growing in the UK, with many people wondering whether the UK’s housing market miracle can continue for much longer. House prices have been rising significantly over the past decade, but some home owners are wondering whether the party is about to come to an end.

With various global housing markets having seen significant and often sudden drops, some are beginning to wonder whether the UK is about to follow suit.

For many, memories of the housing crash of the 1980s are still fresh in the mind. Fears of a return to those dark days of negative equity have been raised following the problems witnessed in the US with sub-prime mortgage lenders.

Those choosing to STR are predicting that a sharp downturn in UK property prices is just around the corner. They believe that selling while the market is at its height makes good sense. The intention is to rent and ride the storm, before re-entering the market once prices have fallen.

Others simply cannot afford to buy a home in the UK with prices at record levels. They are left with no choice but to rent and wait for prices to drop.

The problem is that similar sentiments were expressed in 2005, when the housing market slowed for a time. It soon picked up again though and those that decided to STR back then will undoubtedly have lost money as a result.

If the housing market does indeed crash than renting may well be the safest option. If, on the other hand, house prices keep rising then renting may make it difficult to get back into the housing market.

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