Two-thirds of renters paying more than expected as competition remains high

Nearly two-thirds of renters who moved home in the past year ended up paying more rent than they had budgeted for, according to the latest Buy to Let Index from Aldermore, which highlights continued pressure in the private rented sector.

The research found that while the average tenancy has increased to 4.5 years, suggesting many tenants are staying put for longer, those entering the rental market continue to face intense competition. Almost a quarter (23%) of renters moved home during the past 12 months, with 62% saying they faced more competition than they expected when searching for a property.

The survey also found that 60% struggled to secure a suitable home, while 55% said their property search took longer than anticipated. In addition, 41% said they had to move to a different area because there were no affordable rental properties where they wanted to live, while 36% relocated further away from work, family or support networks.

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.