Longer tenancy terms – Good news for investors!

Longer tenancy terms – Good news for investors!good-news-300x184

The rental market has been changing drastically in the last few years, not least when it comes to the demographics who are renting rather than buying. Previously, students and younger people were traditionally the largest groups when it came to rental homes, but more landlords than ever are now letting to families and older people, and it is the first of these that is calling for change.

According to a new survey carried out by Citizens Advice, one of the most important things for families, regardless of where they live is stability. They want to know that they have the long-term ability to plan out their future. However, some are not able to do so because of the length of their rental terms.

It said that as many as 39 per cent of those who live in a private rented home with kids have a tenancy agreement that lasts six months or less. This is a problem for the 59 per cent who said it is hard to plan for the future when they know they could be asked to leave their home in a relatively short space of time.

Of those surveyed, 39 per cent of families who rent with children said they would like the rental agreement they have in place with their landlord or letting agent to be longer. This was higher than the general rental sector, where 34 per cent of tenants said the same.
With average tenancy length continues to increase and is now approaching nearly 3 years according to a recent survey by Allsops.   The increase in demand for longer terms is of course helpful to the investor landlord too. Settled tenants mean a more secure income stream and less of landlords most costly expense – Empty property.

If anyone has any questions about the implications of longer fixed terms please do not hesitate to contact us.

Category : News