Bentley Hurst
by on June 22, 2023
The days aren't the only thing that get longer at this time of year, as we see the list of tenants looking for a property to rent increasing this Spring season. Tenants are renting for longer, which in turn brings longevity to the long-term investment prospects of the buy-to-let market! In the UK, 13 million people rent from a private landlord, meaning the buy-to-let market is expanding all the time.* So, why are tenants renting for longer than ever in the UK?
Cost of living crisis
We have seen the cost of living crisis impact us in many ways over the last year but as a first-time buyer, it's especially going to come into effect when saving for deposits. Whether this is for energy bills, food prices or rent increases, it will all have an impact on how much time it will take for a first-time buyer to save for a property deposit.
Interest rates
Although many analysts believe that interest rates will never return to the ultra-low levels of the past, many people still believe they are too high. As a result, first-time buyers are delaying their decision to buy and ultimately rent their current property for longer.
Lifestyle choice
A growing proportion of people now believe they will never get on the property ladder, choosing to invest in life experiences and preferring not to be tied to a mortgage. This opens yet more opportunities for landlords as the rental sector expands. Attitudes toward owning your own home are changing in the UK and, in many ways, becoming more European, where there is less emphasis on home ownership.
Waiting to see what happens!
Many buyers have delayed making their first move, unable to decide and wondering whether the market has settled. Others are confused and are waiting to see if house prices will rise or fall. As a result, they choose to rent rather than make a decision.
What are the benefits of longer tenancies?
Finding the right home that aligns with everything that you are looking for is something that is important to most people. So when a tenant finds the right place for them, they frequently choose to stay put where they are and rent long-term.
Build trust
Typically, the longer your tenants rent from you, the better you get to know them and how they will look after your property. As time goes on, you may find that they are excellent tenants. This gives you a great track record to give you peace of mind for the future.
Long-term security
The rental market is in a great place, with more tenants looking for a property than there is currently available to rent. Therefore, whatever happens, your investment is secure. That said, longer tenancies mean that you do not have to spend time looking for new tenants and making the necessary checks and preparations.
Better communication
If any issues arise, the channels of communication are often better in long-term tenancies. Good landlords tend to fix any maintenance issues quickly. As a result, your property is in the best possible hands and any minor problems that can turn into costly repairs get sorted quickly.
Tenants will invest in your property
Tenants tend to invest in your property when they are confident that they will be living there for a long time. Things like curtains, decoration, and furniture – not to mention cleanliness and tender love and care to help keep your home in tip-top shape.
How can we help you as a landlord this Spring?
Whatever your investment plans are, at Bentley Hurst we are ready to understand your needs, provide support and work together to get the very best result for you. We can offer you a variety of different plans to assist you on your landlord journey this Spring, including our rent collection, tenant find and fully managed services. Click on the link below to find out more about how we can help you today!
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