Tenants are satisfied with their rental properties, as the private rental sector (PRS) plays a vital role in the housing market, according to a survey of over 1,800 private landlords and tenants by BDRC Continental on behalf of Paragon Mortgages.
Tenant Satisfaction High as PRS Plays Vital Role in the Housing Market
Despite attempts by the Government to crack down on the buy-to-let sector and stimulate homeownership levels, demand for rental properties continued to rise in the first quarter (Q1) of the year. 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 stable.
The PRS is also experiencing high levels of tenant satisfaction. Almost eight in ten (79%) tenants said they are satisfied with their current landlord. A huge 85% consider their current rental property to be their home, while 69% believe the rent price they pay is good or very good value for money.
Reflecting the struggles of generation rent to get onto the property ladder, the average length of time a tenant spends in their current property now stands at around seven years. The average length of time spent in the PRS in total is almost 13 years.
Landlords claimed that the PRS is playing an increasingly important role in the UK’s housing market. With the social housing sector having lost around one million homes since 1991, over three quarters (78%) of landlords agreed that the PRS compensates to some extent for the drop in social housing.
The majority of landlords (89%) also believe that the PRS plays an important role in accommodating those who are priced out of homeownership, while almost three quarters (74%) agree that the PRS plays a role in accommodating those excluded from social housing by dwindling supply.
The Director of Mortgages at Paragon, John Heron, comments: “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.”