ARLA research shows tenants staying for longer than ever
Tenants are remaining in rented houses for longer than ever before, according to new research.
Letting agents are seeing people staying for an average of 20 months, a study from the Association of Residential Letting Agents (ARLA) found.
The organisation’s managing director, Ian Potter, suggested the private rented sector (PRS) is performing well partly due to tenants’ difficulties in securing mortgages, mortgagestrategy.co.uk reports.
He said: “The PRS is clearly picking [up] the slack resulting from a flat housing market and the ongoing lack of mortgage finance. As tenants stay in properties for longer, the importance of regulation in the sector becomes even more pressing.”
According to property118.com, the ARLA research relates to the second quarter of 2012 and also demonstrates increased demand for homes – as 58 per cent of the organisation’s offices reported that there are more prospective tenants than available properties, which represents a quarterly increase of two per cent.
Mr Potter championed the benefits of renting, noting that it can offer increased flexibility for working professionals who may need to move to a new home when they change jobs.
In terms of who is currently renting, the ARLA report found that frustrated first-time buyers are the most common type of tenant. Others simply preferred renting, had just sold a property to rent or have just had their property repossessed.