The Average Tenancy Length Is Rising…
Long-term stability for renters can be beneficial to both tenants and landlords.
Most property investors who own buy-to-let properties want long-term renters in order to minimise vacancy periods and the costs involved with finding new tenants.
And — there’s been a lot in the headlines recently about increasing renters’ rights in order to give them more security.
However, we are witnessing an increase in the average length of time individuals stay in rented housing, owing mostly to the economic outlook.
The following are the primary reasons why renters continue in long-term rentals instead of home ownership:
✅ Initial outlay costs
> The average deposit for a competitive mortgage in the UK is £41,765
> The average house would incur £4,876 in stamp duty
✅ Ongoing financial commitment
> The annual cost of maintaining a UK house is £2,784
✅ Macro factors
> Rising interest rates will have an impact on repayments
> The rising cost of living is making the future unclear
✅ More flexibility
> The pandemic demonstrated that renters were the first to capitalize on moving out of towns and cities.
As renters look to enjoy greater security, longer average tenancies are also good news for landlords, seeking greater predictability in their property investments…
Data: Ocasa
