Over the last two years there has been a 300% increase in average tenancy lengths in the UK. Tenants are now spending an average of four years in their rental property, which is a new five-year high.
The Residential Landlords Association (RLA) is speaking to the government about removing barriers to longer term tenancies and this includes restrictions on landlords that have been imposed by lenders and freeholders of leases.
Approximately 17,500 new households enter the private rented sector (PRS) every month and this growth is driven not only by affordability issues to the housing market but also the flexibility that renting offers.
Such is the rising propensity for renting that Price Waterhouse Cooper forecast that by 2025, only 26% of 20 to 39-year olds will own their own property, the rest will be renting. Increasingly, families and the retired are also turning to the PRS sector with 77% of families in the rental sector, regarding their rental property as home.
As the supply and demand issue for property in the UK continues to escalate, tenants are looking for security within the PRS sector and that’s why the average tenancy length is on the increase. This is all good news for property investors who are now enjoying longer tenancies on their properties, with less void periods.