Differences between renting and buying



Housing costs

Renting Buying

Your Homes Newcastle are committed to keeping rents affordable. 

Mortgage payments can be higher than renting and can change depending on the type of mortgage you have chosen. If you do not keep up to date with your mortgage payments you may lose your home.
Your building insurance is covered as part of your rent payment. You can choose to have your Contents insurance through the Council. You will need to arrange your own buildings and contents insurance if you are buying a house or bungalow. If you are buying a flat you must have your buildings insurance with Newcastle City Councils chosen insurer. You will have to organise your own contents insurance.

 

Housing Benefit

Renting Buying
If you are on Income Support or on a low income you can claim housing benefit which may help towards paying your rent. If you buy your house you will not get housing benefit. Even if you are on income support you will not get any help toward the cost of the mortgage repayments. If you have been receiving income support for thirteen weeks you may qualify for help but only toward the interest on the mortgage.  If you do not keep up to date with your mortgage payments you may lose your home.

 

Repairs

Renting Buying
The cost of repairs and maintenance is covered by your rent  You are responsible for the cost of repairs and maintenance of your home. These can be expensive.
If you buy a flat or maisonette you will be charged a share of the costs of any works done to the exterior and structure of your home. These can be high and you must pay them.