The government’s latest English Housing Survey has been released. Analysed by the National Landlord’s Association (NLA), it has revealed some surprising insight into the UK rental market.
According to the EHS data, tenancies are longer than many expected. The average time a tenant lives in their home is currently more than four years.
Another surprising fact is that the proportion of household income that is spent on rent has fallen during the last year. Households in England currently spend 35% of their total income on rent (although in cities such as London this figure is a lot higher).
In recent years, there have been calls to increase the length of assured shorthold tenancies amid fears that tenants require a more stable and long term solution to their housing needs. This data appears to show that tenants are already experiencing security of tenure, and further regulation is not necessary.
The National Landlord’s Association’s assessment of the data found that the number of households relying on the private rental sector in England is growing rapidly. The private rental sector now accounts for 4.5 million households (20%) of the population, most of whom are aged between 25 and 34.
If this trend continues, the supply of rental properties in England over the next decade will come under intense pressure in some areas. At the same time, changes to mortgage tax relief means that many landlords plan to sell their properties.
A waning supply of quality rental properties looks likely to be the story here for some time to come. Tenants are being incentivized to stay in their homes longer and the choice available to new tenants is reduced. With UK rental market prices already well adjusted, tenants looking to negotiate a further deal may find themselves beaten to the post.
For another post about the rental market in the United Kingdom, click here.