Tenants spending more time in rental properties, research reveals

While homeowners are moving more often, the time spent in rental properties by private rented sector (PRS) tenants has increased by 12% over the past decade, Zero Deposit has revealed.

Zero Deposit analysed Government figures looking at the number of years spent in a property for each segment of the market and how these lifestyle trends have changed over the years. 

The analysis showed that homeowners were moving more and spending an average of 9.2 years in a property.

This was the second lowest amount of time spent in the past 10 years, with the exception of the 2020-21 pandemic year (8.7), and below the average of 9.9 years seen over the past decade. 

It marked a 13.9% reduction versus a decade ago, with homeowners remaining in their properties for 1.5 fewer years today versus 2012-13. 

However, the average PRS tenant was found to be spending 4.3 years in their rental home.

While this reduced slightly on an annual basis, down from 4.4 years, it was 12.1% higher than a decade ago when tenants rented for an average of 3.8 years. 

It was also higher than the average of 4.1 years seen over the last decade as a whole.

Sam Reynolds, CEO of Zero Deposit, said: “Over the last 10 years, tenants have grown increasingly reliant on the private rental sector due to the high cost of home ownership and we’ve also seen renting as a lifestyle choice result in tenants staying put for longer. 

“It’s also fair to say that, with renting itself becoming more expensive, many tenants would rather stay put once they’ve secured a rental property, rather than foot the costs of moving while their original deposit is still being held by their previous letting agent. 

“While the build to rent sector has looked to provide a solution to the requirement for longer term tenancies, it’s PRS landlords who are vital to the sector and are still shouldering the majority of the weight when it comes to the provision of these properties. 

“With the Renters Reform Bill also set to provide further security to tenants with respect to tenancy lengths and eviction powers, it’s likely that the time spent in the same rental property will continue to increase over the coming years.

“This highlights just how vitally important landlords are when it comes to the rental market echo system and why we must encourage investment into the sector, not deter it.”