In a year of change for the private rented sector (PRS), people continue to see homeownership as an ultimate goal, according to research by OSB Group.
With three-quarters (74%) aspiring to buy their own home, the specialist lender looked to understand what landlords can do to attract and retain good tenants.
As part of its ‘The Bricks to Belonging’ report, in partnership with consumer psychologists IB, OSB Group unveiled the drivers behind homeownership aspirations in the UK.
Tenants prioritised strong relationships with their landlords, the autonomy to personalise their living spaces, and a sense of control over their environment.
Neil Richardson, chief sustainability officer at OSB Group, said: “Affordability remains a significant challenge for many Brits and as a result more of us are renting for longer.
“For landlords, this is both an opportunity and a challenge, as they seek to find the best tenants in a shifting market.
“To create a thriving private rented sector, it’s key that we think and act beyond the headlines to support landlords in providing homes for tenants.”
According to the research, these motivations were underpinned by three core psychological drivers that determined a desire for homeownership, beyond demographic influences such as wealth or life stage.
The first was the strength of the landlord-tenant relationship; when negative, this was the primary driver of people deciding to buy.
Sean Hooker, head of redress and ombudsman office The Property Redress, said: “Landlords must recognise that renting is not just a financial transaction for tenants.
“The place where you live profoundly impacts your sense of belonging and emotional well-being.”
The second was the ability for tenants to express their personal identity through their living space.
Dr Simon Moore, chief psychologist and CEO at IB, said: “When you own something, like a house, you tend to want to stamp your personality over the place.
“If you can’t do it in rental property, it has a knock-on impact. Renters feel an inability to feel control because of this and that drives them from the rental market.”
The final key driver was the value of ownership and the need for control.
While the research found that homeowners and renters experienced similar levels of satisfaction with their properties, the need for control was a significant psychological factor in driving them out of the rental sector.
Suzanne Smith from The Independent Landlord, and a founding member of the OSB Group Landlord Leaders Community, said: “Landlords should foster a long-term, collaborative relationship with tenants.
“Reassuring tenants that they can stay in a property long-term helps build trust and stability.”
