Tenants increasingly opt to rent long-term
Growing numbers of tenants are adopting a long-term view when renting their home with more renters wanting to renew their current contracts, research reveals.
The findings from Hamptons International highlights the changing nature of the country's rental market with landlords and tenants benefiting from having a longer tenancy agreement.
They say that in August last year, the number of tenancy renewals was 2.5%, but this grew to 2.8% last month, the highest in nearly a year.
For landlords in London, tenancy renewals account for 3.2% of activity.
However, Hamptons also highlights that even with fewer rental homes available, rents are falling in London.
Average rent in the UK for a new letting
The firm says that the average rent in the UK for a new letting is £975 per month with tenants in the Midlands and Wales leading these gains.
In the Midlands, rents rose by 3.3% and in Wales they grew by 4.4%, year-on-year.
However, rents for new lets in London have fallen for three consecutive months and are now 0.8% down, year-on-year. The capital is now the only area where rents are falling in the UK.
A spokeswoman for Hamptons said: "Rents for a newly let property dropped in London, despite low stock levels, for the third month running. Moving is costly for both landlord and tenant and in a period of uncertainty, landlord yields and tenants incomes are being squeezed so growing numbers of tenancies are being renewed."
She added that affordability is being stretched and with less choice available tenants have increasingly looking to stay put.
Accidental landlords warned about engagement
Meanwhile, the homeless charity Shelter says that accidental landlords need to become more engaged with the country's private rental sector.
The organisation says these landlords need to understand more about their responsibilities in providing someone with a home.
A spokeswoman said: "While these landlords may not be exploitative, their lack of awareness and disengagement have serious consequences for their tenants."
Becoming a landlord is an 'enormous responsibility'
Shelter says that becoming a landlord is an 'enormous responsibility' and it's something that should not be undertaken 'half-heartedly'.
Shelter says it is hoping to work with landlord organisations in a bid to reach ‘in-between landlords’.
They aim, they say, is to create a rental sector that is equipped to provide stable, long-term and good quality homes to deliver the foundation for families, individuals and communities’ well-being.