While many private renters are staying in their homes longer, strong demand from renters continues to put pressure on availability, the latest Aldermore Buy to Let Index has found.
The average lease term has risen to 4.5 years, indicating a degree of stability for many tenants who are already settled into their homes.
However, the picture is more difficult for those on the move. Nearly a quarter of renters (23%) have moved in the past year, and the search remains very competitive.
For renters who moved in the past year, nearly two-thirds (63%) say they ended up paying more in rent than they initially intended when securing their current home.
A similar percentage (62%) say they were competing with more potential tenants than expected when trying to secure a rental property.
Six in ten (60%) say they have found it difficult to secure a suitable property, while more than half (55%) went through a longer than expected search process.
In some cases, limited availability has provided few options for renters. Two in five (41%) say they have had to move to a different area because there were no affordable rental properties where they wanted to live, while more than a third (36%) have moved away from work, family or support networks.
John Cooper, Mortgage Director at Aldermore, said: “Our latest Buy to Let Index shows that although many renters are staying in their homes longer, those looking to move are still facing a highly competitive market. Many are finding they need to pay more than they originally expected, and in some cases are expanding their search into previously unconsidered areas just to secure a suitable home.
“At the same time, the operating environment for Angel It is becoming more complex, threatening to put pressure on the number of properties available for rent. Increased regulation and broader economic pressures mean that many landlords are having to adapt how they manage their properties and finances.
“To avoid exacerbating the existing challenge facing renters, the focus must be on maintaining adequate supply in the private rental sector, to support affordability and give renters more choice and mobility.”
About the Author
