Friday, July 27, 2012
Tenants are staying longer and their rental requirements are
changing, according to new research from the Association of
Residential Letting Agents (ARLA).
The average length of tenancy in the UK has now increased to a
record high of 20 months*. The increase has been attributed to the
strong competition for new properties - 58% of ARLA member offices
state that there are more tenants than properties available, an
increase of two percent on the previous quarter.
Ian Potter, ARLA Managing Director, said, "The PRS is clearly
picking the slack resulting from a flat housing market and the
ongoing lack of mortgage finance. As tenants stay in properties for
longer, the importance of regulation in the sector becomes even
The type of tenant seen by letting agents is also changing; 55%
of new tenants are couples or young families who are struggling to
purchase their first home. When asked, ARLA members said that
'frustrated first time buyers' were the most common group of renter
they were encountering, ahead of those who prefer renting; those
who have sold an existing property to rent; and those who have had
their homes repossessed.
Mr Potter added, "Renting offers significant flexibility, which
can be vital for working professionals who need to move in order to
find employment. However, with an increasing number of families
with younger children also looking to rent, having a secure and
stable home environment has never been more important.
"For this reason, I would urge tenants to use a licensed ARLA
member. The lettings industry is unregulated and renters must be
confident that they are receiving the best possible service. All
ARLA licensed agents must adhere to a strict code of conduct, as
well as offering client money protection and redress schemes, which
protect all parties if things go wrong."