Private renters face longer tenancies and limited housing choices

Private renters face longer tenancies and limited housing choices

New research reveals that private renters in England are increasingly staying longer in their homes, with many feeling unable to move despite wanting to, highlighting a growing gap between aspirations and housing availability.

A survey by the TDS Charitable Foundation of over 2,000 private renters in England shows that while 76% of tenants would like to buy their own home, 44% expect to rent for the rest of their lives. More than half of renters want to move from their current property but feel unable to do so. The average tenancy length in the private rented sector has increased to an estimated 4.7 years, nearly a year longer than ten years ago.

This data points to a significant shift in the role of the private rented sector, which is now accommodating a broader range of households using it as a long-term housing solution rather than a temporary step towards homeownership.

Research findings on tenant preferences and challenges

The survey highlights that almost half of renters (47%) found it difficult to find a suitable property during their last search, indicating limited availability and choice in the private rental market. This lack of options restricts tenants’ ability to move when they want or need to.

Additionally, demand for alternatives to private renting is rising. Nearly 30% of tenants expressed a preference for social housing, up from 21% the previous year. This increase is particularly notable among vulnerable groups: 47% of tenants aged 65 or over, 46% of those receiving benefits, 39% of households with children, and 35% of tenants with long-term health conditions would prefer social housing.

Dr Jennifer Harris, Head of Policy, Research and Social Impact at The Dispute Service Group, emphasises that the private rented sector now serves a wider demographic than in the past, including many who anticipate renting long term. She stresses the importance of housing policy evolving to reflect this reality and addressing the shortage of housing options.

Context of the changing private rented sector

Historically, the private rented sector was often seen as a transitional phase, primarily housing younger people and students before they moved on to homeownership. The current research challenges this perception, showing that a substantial portion of tenants expect to remain renters indefinitely.

Longer tenancies suggest that tenants are settling into their rental homes for extended periods, which may be influenced by affordability issues, difficulties in securing mortgages, and a constrained housing supply. This shift has implications for landlords and letting agents, who may need to adapt their management approaches to support tenants with longer-term rental arrangements.

The growing interest in social housing also reflects wider pressures on the housing market, including affordability and accessibility challenges. Social housing is becoming a more attractive option for groups facing financial or health-related difficulties, indicating a need for increased investment and policy focus on this sector.

Implications for landlords and letting agents

For landlords, the trend towards longer tenancies means rental properties may see less frequent turnover, which can reduce void periods but also requires sustained property maintenance and tenant engagement over time. Letting agents should be prepared to support tenants’ longer stays by ensuring clear communication, regular property inspections, and responsive repairs.

The difficulty tenants face in moving suggests that landlords and agents might encounter tenants who are reluctant to leave even when circumstances change, possibly complicating possession proceedings. Understanding tenants’ long-term intentions and maintaining good relationships could be beneficial.

Additionally, the increased demand for social housing and the pressures on the private rental market may influence future regulatory developments. Landlords and agents should monitor policy changes that could affect tenancy agreements, safety standards, and rights under evolving housing laws.

Remaining uncertainties and future developments

While the research provides a snapshot of current tenant attitudes and behaviours, uncertainties remain about how the housing market will evolve in response to these trends. The government’s approach to housing supply, affordability, and rental sector regulation will be critical in shaping the future landscape.

It is unclear how forthcoming reforms, including those related to renters’ rights and property standards, will impact landlord responsibilities and tenant experiences. Landlords and agents should stay informed about legislative changes and seek guidance from official sources to ensure compliance.

Practical considerations for landlords now

Landlords should review tenancy agreements and property management practices to accommodate longer-term tenants and anticipate potential challenges related to tenant mobility. Maintaining detailed records of communications, repairs, and inspections will be increasingly important.

Given the growing diversity of tenants and their needs, landlords may also consider how to support tenants facing financial or health difficulties, including understanding eligibility for local licensing schemes or support services.

Monitoring market conditions and tenant feedback can help landlords and agents adapt their strategies to retain good tenants and comply with evolving regulations. Checking official government guidance regularly is advisable to keep up with any changes affecting the private rented sector.

Supporting landlords with compliance and management

The Landlord Association (TLA) offers resources and support tailored to the challenges highlighted by this research. Through TLA membership, landlords and letting agents can access up-to-date compliance information and practical guidance on managing longer tenancies and diverse tenant needs.

TLA’s new property management and compliance platform, ORBIT, currently available in BETA testing, is designed to help landlords organise their property portfolios efficiently. ORBIT can assist in managing rental documents, recording key actions such as repairs and inspections, and keeping evidence of compliance activities together in one place. This can be particularly valuable as tenancy lengths increase and regulatory demands evolve.

Exploring TLA membership and ORBIT BETA access can provide landlords and agents with tools to stay organised, maintain compliance, and respond effectively to the changing private rented sector.

The private rented sector’s transformation requires landlords and letting agents to adapt to longer tenancies and a wider variety of tenant circumstances. Staying informed and prepared will be essential to managing properties successfully in this evolving environment.

Sources: Letting Agent Today