Tenants stay for longer in rented properties

Posted on Tuesday, May 3, 2022

Tenants are looking to stay in their rented properties for increasingly longer periods of time, according to Propertymark.

Given the increase in rental prices and lack of stock available, more tenants are choosing to extend their current tenancy agreements beyond their initial term, the March Private Rented Sector Report shows.

The data collected from Propertymark’s members continues to indicate signs of ongoing disparity in supply and demand and this trend looks set to continue for the foreseeable future.

An average member branch reported having just eight properties that were empty and freely available in March, although this figure has improved since February’s figure of five.

An average of 93 new applicants were registered per member branch in March which has increased significantly compared to 78 per branch recorded in February.

The UK average number of landlords that withdrew their properties in order to sell them stood at three per member branch in March which is an increase from two in February.

Some 71% of member agents reported rent prices increasing which is a slight decrease from 74% in February but is still significantly higher than the same time last year which stood at 60%.

Nathan Emerson, CEO of Propertymark, commented: “Our latest report shows that tenants are staying in properties longer. This is in part due to rock bottom levels of stock meaning tenants have very little choice when looking to move. They will also find fierce competition is pushing up prices of what is available often making it unaffordable to move.

“When an increase in tenants staying put for longer occurs, the churn of properties that would normally come back into the market begins to stagnate, feeding the issue further. Agents have been warning of the adverse effects of landlords leaving what they feel to be a hostile market. Property investment, like any form of investment, needs to be financially viable and with adequate risk mitigation. Many landlords feel their rights are being eroded, meaning they are more likely to sell.”

Via @PropertyIndustryEye