Getting a place of your own

To rent or to buy?
This decision will be largely based on your personal circumstances, and will probably boil down to what you can afford.

There are short-term and long-term financial benefits to either renting or buying. For example, a short-term advantage of renting is that your landlord foots the bill of any repairs and maintenance. As for buying a property, this may be more expensive than renting at the outset (because of necessary costs such as a deposit, solicitors' fees, stamp duty and surveys). On the other hand, owning your own place can be seen as an investment for your future.

Initial payments for your house or flat
Before you put the key in the door of your new home, you'll probably have to put down a deposit. If you're renting, this is often the cost of a month's rent in advance. This amount should be returned to you at the end of your lease provided you leave the property in good condition and don't owe the landlord any money. If you're buying your own place, you'll pay a sum towards the full purchase price of the property, and arrange a mortgage (a loan secured on the property) on the rest. This amount varies between mortgage lenders - most will expect you to pay at least 10% of the house price as a deposit.

Regular outgoings
Your rent or mortgage will probably be your largest regular outgoing in keeping a roof over your head. However, it's important to set aside enough money for other necessary home-related spending, too. This can include:

• Utility bills: You'll receive bills for the gas, electricity, water and other services, such as phone or internet access, which you use in your home. The amount you pay will vary according to the service provider and how much you use;
• Management charges and leasehold payments: Sometimes, landlords of rented or leasehold properties may charge for services that benefit all tenants of a building (such as a block of flats). For example, you may pay towards caretaker services or the upkeep of a shared garden.

Council tax
This is a tax on where you live. The amount will depend on the value of the room, flat or house you live in and how many people live with you. If you live on your own, you’ll get 25% off, and if you’re a full-time student you won’t usually have to pay any council tax. If you’re in full-time employment and live with a student (or someone who is over 18 and exempt from paying council tax), or you have difficulty in paying council tax, you could claim council tax benefit and get a discount.

You can pay council tax in one lump sum or in regular instalments. If you're in any doubt about paying council tax, call your local authority (council) for advice.

Home insurance
If your stuff is worth owning, then it’s worth insuring. Contents insurance covers accidental damage to your belongings while inside the home, such as by fire or flood, as well as the risk of theft.

A contents policy may also cover the loss of rent to your landlord or the extra cost of staying elsewhere if your home isn't fit to live in.

It may insure belongings while they're temporarily away from home, for example if you take them to work or on holiday. Be aware that some items of high value – like musical instruments or jewellery - may require insurance cover at extra cost.

If you own your home you'll also need to pay for buildings insurance to cover the structure of the house, including fixtures and fittings, garages and other outbuildings. Buildings insurance pays for repairing structural damage, including damage from fire, subsidence, flood, vandalism and theft.

Policies vary between insurers, so shop around for different deals to suit your exact needs.

Housing benefit
Housing benefit is available for those who need extra support in paying rent. To be entitled to claim housing benefit you must show that you meet the following conditions:

• you have a low income and savings below a certain amount;
• you're responsible for paying the rent for your accommodation; and
• the accommodation is your only or main home.

If you're single and under 25, you should get enough to cover the average cost of a single room in a shared house in your area. If you live with a partner, only one of you can claim housing benefit. If you're a full-time student, you're unlikely to get housing benefit unless you have disabilities or children.