A new investigation has indicated that a growing number of renters now prefer shorter tenancies.
Data from a report conducted by Knight Frank shows that 53% of tenants favour either a six month or one year agreement.
Flexible
The results from the firm’s PRS research shows that rented accommodation as a whole is now becoming a flexible form of tenure, particularly amongst younger workers. 69% of tenants between 18-24 said that they preferred agreements for either six months or a year. 61% of 25-34 year olds said that they also preferred this timeframe for tenancies.
By nature, the rental market allows a lot of freedom and therefore a lot of movement. This mobility is underlined by reasons why people move property, with 30% of tenants who have lived in at least one rented home identifying a desire to upgrade as their motive.
52% of tenants said that living close to their place of work was a key priority.38% of those questioned have lived in five or more rental properties. 23% of these had moved less than a mile from their previous property, with 19% moving more than 60 miles for study or work purposes.
28% said that they would be happy to pay up to 30% of their total gross income on rent. In the capital, 31% of under-25s said that they were prepared to pay 50% of their income on rent.
Almost one-quarter of those in the private rented sector said that they live alone, with 34% living in a home as a couple but with no children. 43% of 18-24 year olds said that they were currently sharing rental accommodation with a friend.
Priorities
‘The Tenant Survey shows us that priorities for tenants when choosing a property include proximity to their place of work or study, how easily they can reach transport links and how affordable the property is,’ said Grainne Gilmore, Head of UK Residential Research. ‘Tenants are mobile, owing to the flexibility offered by renting as a tenure and while the motivations for moving vary, the largest cohort of respondees identified the wish to upgrade to a bigger or nicer property as their key motivation for moving into their current rented property.’[1]
Tim Hyatt, Head of Lettings at Knight Frank, noted that,’ the face of the Private Rented Sector is changing rapidly amid increasing large-scale investment. Already a dominant form of tenure in the UK, it is also becoming an established asset class and we believe that Knight Frank’s market-leading Tenant Survey provides key insights into the market, addressing the fundamental questions for investors seeking to bring to market a Build-To-Rent development which perfectly meets tenant requirements.’[1]
[1] http://www.propertyreporter.co.uk/landlords/renters-opting-for-shorter-tenancies.html