Longer tenancies in demand

A NEW report has shown a significant increase in demand for rental properties with all bills included. Over the last year, enquiries from tenants for this type of property have jumped by 36 per cent.

The research study was carried out by property website Rightmove, who analysed the search features of thousands of build-to-rent listings.

Enquiries for homes with balconies, communal gardens and zero deposits and places where pets are allowed, have all increased by 22 per cent.

The findings reveal some changes in the needs and behaviours of tenants, against the backdrop of record rental costs and rapidly increasing household bills.

Meanwhile, a new study of nearly 1,300 landlords found that the most common length of tenancy is more than two years.

Eighteen per cent of landlords said the average length of their tenancies has increased over the last year, whereas only five per cent saw a decrease in average tenancy length.

The latest data from Rightmove shows that national asking rents outside London are rising at the fastest rate ever recorded, now £1,088 per month on average, which is 11 per cent higher than this time last year.

In London, rents are up over 14 per cent than a year ago at £2,195 per month on average.

There are also more than triple the number of tenants enquiring as there are rental properties available, making it the most competitive rental market ever.

The lack of available stock is a combination of tenants requesting longer tenancies, and high demand from people who didn’t move or moved in temporarily with friends or family during the pandemic.