Tenant Satisfaction Rates Indicate a Positive Outlook for Landlords
Published on December 16, 2017 by Sarah Mac
There are some 4.8 million privately rented homes owned and let by two million landlords across the UK according to Paragon, and HMRC figures reveal that landlord numbers increased by 7 per cent to hit 1.75 million in 2013-2014 with the market worth £14.2 billion to landlords.
Homelet is a private organisation that provides tenant referencing and insurance for letting agents, landlords and tenants.
Every year, Homelet publishes a Tenant Market Survey which asks tenants for their views on the private rented sector.
The most recent publication for 2017 received 20,000 responses and the results indicated a satisfied mood amongst tenants. Here are the key findings:
- 68 per cent of tenants expect to be renting for a year or longer
- 5 per cent of tenants say they will continue renting for one to three years
- 72 per cent of tenants were very happy with their landlord or letting agent relationship
- 50 per cent of tenants felt the rent they paid represented very good or quite good value for money
- Tenants regarded flexibility to move easily, property location and ease of maintenance as the top three elements they liked most about renting
Renting Cheaper than Buying
Further research from property website Zoopla backs up the positive rental market conditions. Its analysis revealed a number of interesting facts, including that the cost of renting a two-bedroomed home was lower compared to repaying a mortgage across 50 of the UK’s largest cities.
Furthermore, 59 per cent of 20 to 39 year-olds in England will be renting privately by 2025 according to PricewaterhouseCoopers who also state that there were 5.4 million households in 2015 making the private rental sector, and that this is expected to grow to 7.2 million by 2025.
No Immediate Concerns for Landlords
Whilst it can be said that the rental market has gone through a raft of changes over the past few years, especially concerning taxation and legislation, a Homelet survey of landlords has revealed that most respondents (33.8%) are satisfied that they have no immediate concerns.
Naturally there will always be political and market conditions that will from time to time lead to uncertainty within the property market, Brexit very much included, the fact remains that the mood amongst tenants AND landlords is positive, and that it appears renting will continue to be a necessity for many for the foreseeable future.
Protecting Your Investment
Of course for landlords, whilst the majority of tenants WILL be first class, there are steps that can be taken to guarantee a smoother ride whilst renting property. Aside from the obvious tenant referencing and engaging a good managing agent, as well as ensuring adequate specialist landlord insurance is in place, the benefit of investing in an unbiased, independent and professionally compiled inventory, check-in and check-out report cannot be over-emphasised as a sure method of reducing risk and protecting your investment. Regular mid-term inspections are also a must to ensure your property is being kept in good order and that your tenancy agreement is being adhered to.
If you’d like to learn more about our professional digital inventory services, please get in touch.