There is finally some good news for landlords as average UK tenancy lengths increase. Tenants are now beginning to adopt a longer-term view when renting property. This is reflected in the average shorthold tenancy length which is now around 20 months in the UK.
According to recent statistics, tenants rent longer in Wales and the shortest in the south-west of England. Figures from estate agency networks show that average tenancy length in the UK is now up 18% from 2014 with a renter in Wales typically remaining in the same property for two years. This is thanks partly to the fact that the average rent in Wales in June 2017 was £599, below the average for the UK.
The shortest tenancies in the UK were found in the south-west of England. Here tenants tend to remain in the same property for around 15 months. This may explain why the average rent fell to £644 a month in June 2017 from £684, nine months previously.
Let’s move on to London which is home to nearly a fifth of the UK’s rental properties. The capital city has an average tenancy length of 20 months which is on par with the rest of the UK. This is good news for landlords considering that London remains by far the most expensive in the country to rent. By June 2017, average rental payments hit around £1,277 a month.
A shift towards longer term rentals
In the last six months or so, there has definitely been a shift towards longer term rentals which provide security for both landlords as well as tenants. Tenants want to feel settled and if landlords can provide a suitable living space, tenancy lengths will increase. A better co-operation between landlords and renters is also beneficial to both parties. Long-term renting offers affordability along with stability, great news for landlords!
If you’re a landlord, check out the following to give you an idea of tenancy length across the UK:-
Region Tenancy Length
Wales 24 months
West Midlands 22 months
South East England 21 months
East of England 20 months
London 20 months
East Midlands 20 months
North West 20 months
East of Scotland 20 months
Yorkshire and the Humber 19 months
North East of England 18 months
South of Scotland 18 months
Edinburgh & Lothian 18 months
Glasgow & Clyde 18 months
Northern Ireland 17 months
Highlands & Islands 16 months
South West of England 15 months
The nature of the rental market continues to change, however, tenancy lengths above are seen as a very positive sign. What’s more, recent research from The Royal Institute of Chartered Surveyors has revealed that rents in the UK are likely to increase 25% over the next five years.
Two reasons for this are the ever-increasing level of demand in the private rental sector as well as property prices which are expected to increase 18% in the same timeframe. Tenant demand is outweighing new properties available to buy on the market. Again, it’s a win win for landlords especially those looking to provide tenants with long-term tenancies.