"The lack of appetite among tenants for short-term rentals actually suggests that the Renter’s Rights Bill won’t make an awful lot of difference"
- Bekki Leaves - FCC Paragon
As the proposed Renter’s Rights Bill (RRB) looks set to remove the option for landlords to offer fixed-term tenancy agreements, new data suggests this move may not reflect what tenants actually want. Research from FCC Paragon shows that long-term rental contracts remain far more popular than short-term lets across Great Britain.
FCC Paragon analysed demand for rental properties, excluding holiday lets, and found that only 10.4% of short-term rental listings on the market have secured a tenant. In contrast, 25.2% of long-term rental properties have been let agreed, highlighting a 14.8% gap in demand between the two rental types.
The figures indicate a significant disconnect between the intentions of the RRB and actual market trends. While the bill aims to give more flexibility to tenants by removing fixed-term contracts, the data shows tenants are far more likely to seek out stable, longer-term arrangements.
Regionally, the appetite for short-term contracts is even weaker. In London, demand for short-term lets is just 7.1%, which is 14.7% lower than the demand for long-term agreements at 21.8%. Other areas show similarly low levels of interest, with short-term demand at 7.8% in the North East, 8.3% in Scotland, and 11.6% in Wales.
The South West shows the biggest divide between short- and long-term rental interest. In this region, 30.6% of long-term properties have tenants secured, compared to just 11.7% for short-term options—a gap of 18.9%.
Even in regions where short-term lets appear relatively popular, such as the East of England (34.1%) and North West (22.5%), long-term demand still leads at 35.6% and 23.3% respectively.
“Landlords are understandably concerned about what impact the Renter’s Rights Bill will have on their businesses, not least the sections of the bill that deal with tenancy agreements and evictions," comments FCC Paragon managing director Bekki Leaves.
"By installing assured periodic tenancies as the new norm, the RRB eliminates a landlord's chances of securing the guarantees of a long-term agreement and, as such, places power firmly in the hands of the tenant. On one hand, we have landlords completely unable to end contracts within the first 12 months, while on the other, tenants are free to leave at any time by providing a short notice period."
She added, "Rather than create fair equilibrium, this proposal seems to shift the balance entirely in favour of the tenant, but the lack of appetite among tenants for short-term rentals actually suggests that the Renter’s Rights Bill won’t make an awful lot of difference."
"The majority of landlords and tenants prefer long-term contracts thanks to the security and stability they provide. Even if the RRB does come into effect, tenants will still prefer to stay in their homes for longer periods of time, which means for good landlords and good tenants, it will continue to be business as usual.”
