How is the Cost-of-Living Crisis Changing Tenant Behaviour?
Tenants are remaining in rental properties for longer, in the hope of avoiding rent rises, according to new analysis from Rightmove.
Average tenancies, are now more than two years, with only 5% of landlords saying tenancy lengths have decreased.
Research by the property portal also found that more tenants are seeking properties with bills included since the start of the cost-of-living crisis (up by 36% this year).
Rightmove’s Quarterly Rental Tracker reveals that London rents increased by over 14% in the past year and are now averaging £2,195 per calendar month.
Demand for rental properties is also high, with three times as many people enquiring as there are properties to rent. Demand is attributed to tenants staying in their properties for longer coupled with people who lived with family or friends during the pandemic now looking for a place of their own.
In another hangover from lockdowns, demand has increased for rental homes with balconies and communal gardens as well as for properties allowing pets.
Rightmove found that landlords are recognising the challenges facing tenant households with almost two thirds (63%) not implementing rent rises this year.
Tim Bannister, Rightmove’s Director of Property Data, said: “A shortage of rental homes and strong demand for the properties available has led to a greater number of tenants choosing to renew their leases and stay put, rather than re-enter a competitive rental market.”
He added: “Many landlords build up a relationship with their tenants over a number of years, and they will want to keep a good tenant for longer if they can rather than cash in on a rent rise in the short term.”
Read more about this story on the Property Reporter website.