Average tenancy getting longer
The average tenancy could soon be increasing in length, rman.co.uk reports.
A strong lettings market has recently been further boosted by a stagnating sales sector, meaning that more Brits head into the private rental sector as they find mortgages unattainable.
As this continues, rental properties become more desirable and so the prices increase. In order to combat the price hikes, tenants have become increasingly likely to sign long-term lets to secure their property for the foreseeable future and safeguard it from rent increases.
This is the opinion of Gary Styles, strategy, risk and economics director of property analytics firm Hometrack, who claimed long-term lets are now not just a more popular option but a more desirable one as well.
Styles also mentioned that, despite the market showing growth, landlords are also keen to lock in long-term lets as it guarantees a rental yield for some time - whilst keeping hold of good tenants for longer periods of time. It could also lower void periods and mean landlords do not need to undertake tenant referencing so regularly.
Acknowledging that "he need for that guaranteed yield and locking in the yield" could be a factor behind the longer-term lets, Styles told stride.co.uk: "There seems to be a growing recognition that longer-term arrangements would be a bit more appropriate, but I think it will take time."