One-in-three renters would accept a rent rise

One-in-three renters would accept a rent rise

10:47 AM, 12th April 2023, About 11 months ago 4

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Faced with the prospect of a rent increase, half of all tenants say they would move out in the hope of finding a cheaper rent elsewhere, research reveals.

That’s despite the demand for rented homes being 10% higher currently than it was in March 2022.

As a result, many tenants face the tough decision of whether to stay put and pay the higher rent or to move in the hope of getting a better deal.

However, the research from Uswitch highlights that one in three tenants would renew their tenancy –  but only if they have a positive relationship with their landlord.

How many tenants consider their relationship with a landlord

Uswitch says it set out to discover how many tenants consider their relationship with a landlord when making rental decisions – and whether they would accept a longer contract or a rent increase if they had a positive relationship.

The platform found that more than a third (36%) of all renters would both renew their contract and accept a rent increase if they had a positive relationship with their landlord.

Despite this, the most popular choice for half of all tenants would be to renew their contract, but only without a rent increase.

Only one in ten tenants say they would neither renew their contract nor accept an increase in rent.

Tenants place a lot of importance on the positive values

Kellie Steed, Uswitch’s buy-to-let mortgages expert, said: “It is clear from our survey data that tenants place a lot of importance on the positive values that go into a successful landlord-tenant relationship.

“It is these positive relationship building blocks that have influenced 36% to consider renewing their contract on a higher rent.”

The survey found that tenants aged over 55 are the most likely (44%) to renew their contract, even if their rent is increased.

And both landlords (51%) and tenants (68%) agree that communication is the key to a successful landlord-tenant relationship.

Base their rental decisions on their landlord-tenant relationship

Uswitch says that 18-24 year-olds had the lowest percentage of tenants willing to base both of their rental decisions on their landlord-tenant relationship, at just over a quarter (26%).

However, this age group gave the second highest vote to the option renewing without an increase (53%), only narrowly behind their peers aged 25-34 who gave 54% of their vote to this option.

At the other end of the scale, tenants aged 55+ were the most likely to consider a contract extension and rent increase based on a positive relationship with their landlord.

More than four in ten (44%) voted for this option, 16% more than 18-24 year-olds.


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Comments

Freda Blogs

12:17 PM, 12th April 2023, About 11 months ago

"[H]alf of all tenants say they would move out in the hope of finding a cheaper rent elsewhere"...
Good luck with that, in a market of increasing demand and diminishing supply.
The article does highlight however the importance of good communications and relationships between landlords and tenants, a point missed by most of the proponents of rental reform.
Speaking from experience, both as a landlord and for many years a consultant in process redesign for big property companies, the latter are very process driven – they have to be, to keep on top of compliance, budgets, repair etc obligations and to facilitate liaison between departments, and of course to avoid problems with reputational risk and keep shareholders happy.
Smaller landlords, whether an individual, or a small group of people, represent all the ‘departments’ and have far more latitude in how they manage their properties, plus the discretion they can give to individual tenant circumstances. That doesn’t make them any worse or less efficient than larger companies, just different.
One vital aspect of the PRS that is being lost due to so many landlords selling up, fed up of the constant legislative change and negativity towards the sector, to be replaced by the government-preferred corporates, is the personal (and human) relationship, which larger companies cannot hope to replicate; tenants will have to deal with often faceless companies with no single point of contact, no rapport and invariably a system-led, rather than human-led approach.

moneymanager

12:42 PM, 12th April 2023, About 11 months ago

Reply to the comment left by Freda Blogs at 12/04/2023 - 12:17
I remember reading a spoof of a disgruntled tenant in somewhere like Pinner wanting a change from the monotony of the "corporate" style of decor and unfriendliness of the remote service personnel, on calling up another building in Ruislip they discovered that every flat in London NW was by then owned by one Chinese landlord with no options and possibly, if they got fed up with you, no accomodation at all, dystopian?

NewYorkie

13:58 PM, 12th April 2023, About 11 months ago

'... most popular choice for half of all tenants would be to renew their contract, but only without a rent increase'.

Sums up the naivety of younger tenants. They don't get to choose how they occupy someone else's property... unless that choice is to leave.

Reluctant Landlord

15:56 PM, 12th April 2023, About 11 months ago

there seems to me a bit of confusion with the term 'renewing their contract' in this article. Not necessary at all if only for a rent increase.

If you are only talking about tenant that is on say a fixed 12 month contract then the article is deceptive as those specific tenants would me much less in populous than the majority I suspect who go for a 6month AST then rolling?

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