According to data from Propertymark, a shortage of rental stock is fuelling the surge in renters staying put, with 73% of letting agents saying they have seen a growth in the number of tenants renewing contracts over the past year.
Increase in long-term tenants
The rental market has seen a vast increase in tenancy renewals due to a shortage of stock, which has had a knock-on effect on rising rents. Remaining in the property is currently far more desirable than taking the risk with another property, or location, in a time of economic discomfort.
Propertymark’s July Private Rented Sector Report detailed the continuous surge in rental demand, with an average of 127 new applicants registered per member branch last month, noting that “this number has been on a slow upward trend since February.”
The imbalance between supply and demand has led to 82% of agents acknowledging that month-on-month rent prices increased in July. Pressure on rents has been steadfast since last year, with the cost-of-living crisis and rising inflation playing equal parts in the increases.
The cost-of-living crisis has created a vast number of long-term tenants, as saving for a deposit takes a back seat for the time being. The rental growth caused by current rampant demand is also a huge driving factor behind many people choosing to delay taking out a mortgage until supply picks back up, making rental accommodation a highly popular choice. Becoming a landlord in today’s climate allows the investor to generate capital growth, as their yield grows while the property value increases.
Is now the time to go fully managed?
With the disparity between supply and demand underpinning a rise in inflation, UK landlords are reaping the benefits of getting their foot in the door during a time of peak buoyancy. As the average property price increases, future sale prices also increase, meaning a buy-to-rent asset increases in value over time.
However, such an asset can be difficult and time-consuming to manage without help, particularly for new landlords who are still learning the ropes. The prospect of long-term tenants presents its own challenges too, as long-term use of a property demands more regular check-ups and maintenance.
To help landlords secure and maintain long-term tenants, letting agents can:
- Find the right tenant for you and market your property.
- Arrange the tenancy: A rental agent can handle everything from getting references to running credit checks, securing deposits, and drawing up tenancy agreements.
- Collect rent: A rental agent can collect rent from your tenants and follow up on any late payments.
- Answer tenant queries, deal with issues and concerns, and handle maintenance or repair work that needs scheduling.
Fully managed services can ensure the quality of your tenants
One of the most important reasons for becoming fully managed is to ensure that you have high-quality, dependable tenants. A managed service can help you to create long-term, positive relationships with tenants who are loyal, pay their rent on time and keep your property in good condition – giving you peace of mind.
If your tenants are staying put for longer, our fully managed services will alleviate the stress of taking care of your property. Find out more by getting in touch today.
