Tenancies lengthening as landlords and tenants seek stability
The typical shorthold tenancy agreement has been getting longer as landlords and tenants sign up to lengthier contracts, propertycommunity.com reports.
In their newest quarterly Landlord Panel, the National Landlords Association (NLA) found that average tenancy length is increasing, with some 54 per cent of the agreements measured lasting for between two to three years. Furthermore, 32 per cent of all tenancies are now lasting longer than four years.
The figures suggest that both landlords and tenants are seeking stability in the face of a changeable lettings market. As sales remain lacklustre, but numerous policies take hold in order to make it easier to get on the property ladder, the future of the housing market looks uncertain.
This, it is thought, is behind the decision for landlords to offer longer rents in order to offer their tenant some stability. The tenants, meanwhile, can then tie themselves into a property without worrying about competition from others if demand continues to outstrip supply.
Commenting on the figures, chairman of the NLA David Salusbury told build.co.uk: "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."