Tenants rent for longer as new tenancies plummet
12:05 AM, 12th February 2025, 1 year ago
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The number of new rental agreements in England and Wales have reached their lowest point in eight years, according to a report by The Deposit Protection Service (The DPS).
Its Private Sector Rental Review, which analyses official data from government-approved deposit schemes, reveals a big drop in new tenancies.
Between October 2016 and September 2017, landlords registered 250,000 new deposits.
This figure dwindled to below 77,000 during the same timeframe in 2023-4.
Less common to see tenants move
Matt Trevett, the managing director at The DPS, said: “Whilst the overall number of tenancies in England and Wales continues to increase, that rate of growth has slowed during the last 12 months.
“This is the first time the rental market has grown by less than 100,000 tenancies in any 12-month period during the past eight years.”
He added: “Tenants are now spending just under two and a half years in a property on average, which is around four months’ longer than in 2021.
“A combination of high rents and a shortage of suitable rental properties means that it’s less common than ever to see tenants move.”
Tenancies are lasting longer
However, existing tenancies are lasting longer with the average extending by 121 days, rising from 789 days in 2021 to 910 days by the end of 2024.
The DPS report, incorporating tenant and landlord survey results, further highlights this trend.
It found that the proportion of tenants moving within the past year fell from 46% (April 2023) to 20% (October 2024).
Conversely, those renting for one to five years increased from 42% (March 2024) to 54% (October 2024).
Also, 35% of tenants in October 2024 reported staying put despite wanting to move, up from 24% in March.
Tags:
Deposit Protection, England rental market, Property market, rental market slowdown, rental tenancies, tenancy length, tenant survey, the dps, UK rental market, Wales rental market
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Member Since May 2024 - Comments: 204
2:39 AM, 12th February 2025, About 1 year ago
I’d have to agree, tenants are not moving.
99% of my tenants have been with me for over 5 years, one over 12 years, most around 8 years.
I had 1 tenant move out a couple of years ago as they needed a council bungalow
Any new purchases over the last few years still have the original tenant.
I’ve no idea where they came to a figure of 910 days?
Member Since September 2018 - Comments: 3538 - Articles: 5
6:46 AM, 12th February 2025, About 1 year ago
Houses – I had one couple move back to Poland in 2023 after an 8 year tenancy having given up on England. They were replaced with a family from Africa working for the NHS. They are settled, kids at local school etc so I cant see them ever moving. Rent in under market rate and they are happy where they are. Only yesterday they asked if I had anything else available for a friend of theirs and that’s after a £50pcm rent increase last month too which they said they were grateful for as was expecting possibly more. I must be doing something right!
Another house rented by a young couple 2 years ago. Before that was a divorcee that needed a year to get the divorce stored and money released. She went on to buy a place of her own. The young couple may be saving for a property of their own I guess, but happy to be where they are as location suits them to the ground, again rent under market rate so I can’t see them going anytime soon if is also allowing them to save.
The only tenants leaving my flats have been the ones evicted for rent arrears/asbo, none went voluntarily! As they have been removed, they have been replaced with pensioners such is the need for ground floor/small first floor flats in a lovely area and great location. I can’t see any of them leaving voluntarily leaving either until such time as they cannot remain independent. Longest tenant 22 years with many over the 10 year level.
Often tenants move properties within the portfolio (from a bigger flat to a smaller flat and vice versa). Average tenant stay for all my properties is around 8 years I guess.
The RRB is going to mean less movement I think. Options to rent will be limited not only to those looking to rent for the first time, but properties available for those already in a rental to move from. Unless you have to move for a job any tenant is going to think hard before giving notice – they are going to want to secure something BEFOREHAND. That is going to be difficult. The new prospective LL is going to want to fill an empty property as fast as possible. They are not going to hang around for potentially 2 months waiting for the tenant to move in while only holding a weeks worth of rent are they?
PRS constipation beckons….
Member Since December 2023 - Comments: 1589
3:16 PM, 12th February 2025, About 1 year ago
Tenants can’t move because the population crisis means there are very few suitable vacant rental properties.
This means many tenants are likely to be stuck in homes that are too small for their growing families or in homes that are too large for families that are reducing in numbers.
Member Since February 2025 - Comments: 52
6:40 PM, 12th February 2025, About 1 year ago
obviously because available properties for rent get a huge number of applications. they understand it’s difficult to get another place to rent as demand for rental properties is very high