New research reveals no typical tenant profile in private rented sector

New research reveals no typical tenant profile in private rented sector

A recent survey of over 2,000 private renters in England shows a diverse tenant base with varied housing aspirations, highlighting longer tenancies and a growing preference for social housing among certain groups.

New research conducted by the TDS Charitable Foundation reveals significant changes in the profile and expectations of tenants in England’s private rented sector. The study, involving more than 2,000 renters, found that while 76% of tenants aspire to own their own home, 44% expect to rent for the rest of their lives. Additionally, more than half of renters would like to move from their current property but feel unable to do so. The average tenancy length has increased to an estimated 4.7 years, nearly a year longer than a decade ago.

The findings indicate a marked shift in the role of the private rented sector, which is increasingly serving as a long-term housing solution for a wider range of households, rather than merely a transitional phase before homeownership. The research also highlights a rising demand for social housing, with 30% of tenants stating a preference for it, up from 21% the previous year. This demand is especially pronounced among older tenants, those receiving benefits, households with children, and individuals with long-term health conditions.

Research details and tenant perspectives

The survey’s data points to a significant gap between renters’ housing aspirations and what they perceive as realistically achievable. Despite a strong desire among tenants to purchase their own homes, many anticipate remaining in the rental sector indefinitely. Nearly half (47%) of respondents reported difficulty finding a suitable property during their last search, reflecting a shortage of available and appropriate rental options.

Dr Jennifer Harris, Head of Policy, Research and Social Impact at The Dispute Service (TDS) Group, emphasised the evolving nature of the private rented sector. She noted that the sector now accommodates a broader demographic, including older renters and families, many of whom expect to remain renters long term. Harris stressed the importance of housing policy evolving to reflect these changes and the need for a substantial increase in housing supply across all tenures to provide genuine choice for tenants.

Context: Changing tenant demographics and housing market pressures

Historically, the private rented sector in England was often associated with younger people, students, or those in temporary accommodation. However, this research confirms a trend towards longer tenancies and a more diverse tenant base. The rise in tenancy length to nearly five years suggests greater stability but also possibly fewer opportunities for tenants to move within the sector.

The increased preference for social housing among vulnerable groups highlights ongoing affordability and accessibility challenges in the private rented sector. This shift may reflect both economic pressures and dissatisfaction with the quality or security of private rental accommodation. The shortage of available rental properties suitable to tenants’ needs exacerbates these issues, limiting mobility and choice.

Practical implications for landlords and letting agents

For landlords and letting agents, these findings underline the importance of recognising the changing tenant profile. Longer tenancies and a more varied tenant base may require adjustments in property management approaches, including accommodating families, older tenants, and those with health conditions. Understanding tenant aspirations and constraints can help landlords provide better service and potentially reduce turnover.

The difficulty tenants face in finding suitable properties suggests that landlords who maintain well-managed, adaptable, and affordable homes may benefit from increased demand and longer tenancy agreements. Letting agents should be aware of the growing desire among tenants for stability and consider how to support tenants’ needs within the framework of existing tenancy laws and regulations.

Uncertainties and future considerations

While the research sheds light on current tenant experiences and expectations, it also raises questions about future housing policy and market developments. The extent to which government initiatives will address the shortage of housing options remains uncertain. Changes to tenancy law, rent regulation, and landlord licensing could further impact the sector, but details and timing of such reforms are not yet clear.

Landlords and agents should monitor ongoing policy discussions and emerging regulations that may affect tenancy agreements, possession procedures, and tenant rights. The evolving nature of tenant demographics also suggests that landlords may need to adapt to new standards in property condition, accessibility, and management practices over time.

What landlords should consider now

• Review tenancy agreements and management practices to accommodate longer-term tenants and diverse household needs.
• Maintain clear records of tenant communications, repairs, and inspections to support compliance with safety and property standards.
• Stay informed about housing policy developments, particularly those relating to tenancy law, rent regulation, and social housing provision.
• Assess property suitability for different tenant groups, including families and older renters, and consider necessary adaptations.
• Prepare for potential changes in tenant demand and market conditions by maintaining flexibility in letting strategies.

Supporting landlords with compliance and management

The Landlord Association (TLA) offers membership that provides access to practical compliance resources, documentation support, and guidance tailored to the changing private rented sector. TLA’s new property management and compliance platform, ORBIT, is currently in BETA testing and aims to help landlords and letting agents organise property records, manage rental documents, and keep evidence of compliance activity together. ORBIT’s developing features include tools for recording repairs, inspections, and tenant communications, which are essential for meeting evolving regulatory requirements.

Exploring TLA membership and ORBIT BETA access can assist landlords in adapting to the sector’s changing tenant profile and regulatory environment by providing up-to-date information and organisational tools.

Looking ahead, the private rented sector’s role as a long-term housing option will likely continue to grow. Landlords and agents who anticipate these changes and prepare accordingly will be better positioned to meet tenant needs and comply with future regulations.

Sources: Landlord Today