Happy Buy-To-Let landlords are providing tenants with longer term tenancies, AND guarantees!
Due to the extravagant costs associated with home ownership and the high deposits required by mortgage lenders, tenant demand in the UK Private Rental Sector (PRS) for affordable rental properties has increased drastically over the past few years .
Assured Shorthold Tenancies (ASTs) are being offered for longer terms by landlords in the UK Private Rented Sector (PRS) as tenant demand increases.
Research by National Landlords Association (NLA) found that 54% of PRS tenants are staying in the same rental property for 2 – 3 years because of the stability offered by landlords, who have taken action to thoroughly reference prospective tenants and also because landlords recommend specialist Rent Guarantee Insurance to protect their rental income and ease financial stress on tenants.
UK landlords have reported back to the NLA that 32% of PRS tenancies exceeded 4 years, with 12% reporting that they have had the same tenants for over 5 years.
The NLA also found that out of the 546 landlords it surveyed
- 49% had encountered problems with rent arrears over the last 12 months,
- 37% worried about future rent arrears.
NLA chairman David Salusbury said “Longer tenancies and lower turnover rate are indicators of the stability landlords and tenants needed during difficult economic times. The private-rented sector now accounts for 17% of the UK’s housing stock. Private sector 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.”
Spokesman for Legal 4 Landlords, who offer award winning services for landlords and the lettings industry, including tenant referencing and rent guarantee insurance, said: “The high value deposits required to buy property are deterring many prospective purchasers, resulting in high demand for UK PRS properties. We (Legal 4 Landlords) aim to provide useful products and services to safeguard the financial interests of both landlords and their tenants. Where tenants are happy they will stay longer and with rent guarantee insurance the worry over rent arrears is greatly eased”.