SURVEY FIGURES CUT THROUGH THE SHOCK HEADLINES

The picture painted in the media of the private rented sector is often one of transitory tenants, a constant churn for landlords, and a lack of a security of tenure for those actually living in the homes, writes Phil Cooper. 

But a recent survey by the government department responsible for housing has rather debunked that particular cliché: it would appear that not only does the average tenancy last several years, but that duration has increased by almost 12 months over a 13 year period.

The English Housing Survey, which is carried out by the Department for Housing, Communities and Local Government, found that private renters in 2023/24 have spent an average of 4.6 years in their current home, compared with 3.7 years in 2010/11 – with that average steadily increasing in the intervening years.

That may be an indication of the imbalance between supply and demand during much of that period, with many more renters than there have been homes available leading to those who already have a tenancy tending to stay put.

But it does also suggest that the popular perception of the private rented sector being something of a ‘here today, gone tomorrow’ situation is largely a myth.  The survey shows that of the UK’s approximately 4.5 million households in private rented accommodation, 680,000 moved within the sector, with a further 155,000 leaving the sector to buy their own homes - which means that 3.7 million of them (over 80%) stayed put.

Interestingly, although the proportion of private renters who expect to buy their own home at some stage in the future has fallen from 61% to 57% in the last ten years, a larger proportion of them expect to do so within the next two to five years.

What does this all mean for landlords?  The most important takeout from all these figures is that if you find the right tenant to start with, both landlord and tenant can enjoy a long and settled tenancy, something which is advantageous to both sides. 

Not only will a settled tenancy mean fewer void periods, but longstanding tenants are much more likely to pay their rent regularly and on time, and tenants have a clear incentive to look after the property if they view it as their long-term home.  Meanwhile the tenant can enjoy a secure and settled life, genuinely making their rented property their home.

It is all too easy for headline writers to fall into shock rhetoric, but the truth is that for most tenants and landlords, the system is working just fine.