Tenancies lasting longer as private rental sector increases
Tenancies are lasting longer and landlords are increasing their portfolios as the private rental sector continues to grow, according to the National Landlords Association.
The research shows that 54% of tenancies are now lasting between two and three years, and 32% last longer than four years. It also showed that 10% of landlords had added to their portfolio in the last quarter, compared with 8% in the previous quarter.
A total of 22% said they would look to purchase more property in the coming year.
However, rent arrears continue to be a problem. While tenants are staying longer, a higher number of them are allowing their rent arrears to build up. The survey revealed that 49% of landlords had experienced rental arrears in the past year. More than a third were worried that the problem would get worse over the next 12 months.
David Salusbury, Chairman of the NLA, said: “Longer tenancies and a lower turnover rate are both signs of much-needed stability for both landlords and tenants in tough economic conditions.
“Private landlords are a key part of the investment mix required to meet the rising need for more flexible forms of housing at a time when demand for rented accommodation far outstrips supply.”