Two-thirds of renters paid more than expected in the past year, Aldermore finds
Almost a quarter (23%) of private renters moved home during the past year, with many reporting a difficult search for a suitable property.
Nearly two-thirds of renters who moved home in the past year ended up paying more rent than they had originally planned, according to Aldermore’s latest Buy to Let Index.
The research found that while average tenancy lengths have increased to 4.5 years, suggesting many tenants are staying put for longer, those entering the rental market continue to face strong competition and limited supply.
Almost a quarter (23%) of private renters moved home during the past year, with many reporting a difficult search for a suitable property.
Among recent movers, 63% said they paid more rent than they had initially budgeted for, while 62% encountered more competition from other prospective tenants than expected.
Six in 10 renters (60%) said they found it difficult to secure a suitable property, and 55% reported that their search took longer than anticipated.
The research also highlighted the impact of affordability pressures on location choices. Some 41% of renters said they had to move to a different area because they could not find an affordable property in their preferred location.
More than a third (36%) said they moved further away from work, family or support networks in order to secure accommodation.
At the same time, tenancy lengths have increased to an average of 4.5 years, indicating that many existing tenants are choosing to remain in their current homes for longer.
Jon Cooper, director of mortgages at Aldermore, said: “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.
“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.
“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.”
Related
Millennials and Gen Z set to make up 62% of landlords within a decade, Rely finds
88% of brokers report rise in holiday let enquiries
Together to host portfolio landlord webinar for brokers
UTB cuts 2-year BTL rates by up to 0.50%
The Tipton expands limited company and expat mortgage ranges
Skipton BS and The Co-operative Bank among latest lenders to update mortgage ranges
Young adults not expected to leave home until 27 due to financial pressures, study finds
Redwood Bank launches residential BTL bridging range
OMS integrates with Scroll Finance for second charge buy-to-let cases
Average landlord portfolio generates almost £90,000 a year – Rushbrook
The Mortgage Works raises landlord borrowing limit to £10m
