According to the latest data extracted from surveys of more than 1,800 Private Rented Sector landlords and tenants, demand for rental properties in the UK is increasing and there is a high degree of tenant satisfaction.
The surveys, undertaken by BDRC Continental on behalf of Paragon Mortgages, revealed that despite attempts by the government to dampen the buy-to-let market in 2015 and stimulate home buying, Q1 2016 saw demand for properties to rent continue to rise. The number of landlords reporting tenant demand as either increasing slightly or significantly stood at 39%, up from 34% in Q4 2015. A further 36% of landlords described tenant demand as being ‘stable’.
The sector is also witnessing high levels of tenant satisfaction. Nearly eight in ten (79%) tenants surveyed said they are satisfied with their current landlord. Further, 85% of tenants consider their current rental property to be their ‘home’ and 69% believe the level of rent they pay to be ‘good’ or ‘very good’ value for money.
Reflecting the changing balance in housing tenure, the average length of time tenants are spending in their current properties now stands at nearly seven years. The average length of time spent in the PRS in total was reported to be nearly 13 years.
Landlords also agree that the PRS plays an increasingly important role in housing the UK. With the social housing sector having lost around one million homes since 1991, more than three quarters of landlords polled (78%) agreed the PRS compensates to some extent for the decline of the social housing sector.
An overwhelming majority (89%) of landlords also stated the PRS has an important role to play in accommodating those who are priced out of home ownership, while nearly three quarters (74%) agreed the PRS plays a role in accommodating those excluded from social housing by dwindling supply.
John Heron, Director of Mortgages at Paragon, said: “The rise of the PRS and the decline of the social housing sector have been the predominant trends in the UK’s changing housing tenure over the last 20 years. This data gives an interesting insight into how both tenants and landlords perceive these trends.
It’s good to see tenant satisfaction at such high levels. The sector often suffers from negative PR and the good work done by the vast majority of landlords to provide homes for those who cannot or do not want to buy goes unremarked. This survey clearly demonstrates that the PRS is increasingly providing longer term solutions in housing and that responsible and professional landlords are supporting the provision of housing to those that rely on the PRS for their home.”
