Two out of three new renters are paying more rent than expected amid strong tenant demand, according to new research from Aldermore's Buy to Let Index.
While many private renters are staying in their homes for longer, the data shows that strong demand continues to put pressure on availability for those entering the market.
The average tenancy length has edged up to 4.5 years, suggesting a degree of stability for many renters already settled in their homes. However, the picture is more challenging for those on the move. Nearly a quarter (23%) of renters moved home in the last year, and the search remains highly competitive.
Competition remains intense for renters entering the market
For renters who moved property in the past year, nearly two-thirds (63%) say they ended up paying more rent than they initially intended when securing their current home.
A similar proportion (62%) say they were competing with more prospective tenants than expected when trying to secure a rental property. Six in ten (60%) say they found it difficult to secure a suitable property, while more than half (55%) experienced a longer search process than expected.
In some cases, limited availability has left renters with little choice:
- two out of five (41%) had to move to a different area because there were no affordable rental properties where they wanted to live
- over a third (36%) moved further away from work, family or support networks
Jon Cooper, director of mortgages at Aldermore (pictured), says the findings highlight a widening gap between settled and moving renters. "Our latest Buy to Let Index shows that while many renters are staying in their homes for longer, those looking to move are still facing a highly competitive market," he explains.
"Many are finding they need to pay more than they originally expected, and in some cases expand their search to previously unthought-of areas just to secure a suitable home."
"At the same time, the operating environment for landlords has become more complex, which threatens to place pressure on the number of available rental properties," he continues.
"Increased regulation and wider economic pressures mean many landlords are having to adapt how they manage their properties and finances.
"To avoid exacerbating the current challenge facing renters, the focus must be on maintaining sufficient supply in the private rental sector, to support affordability and give renters greater choice and mobility."
