54% of tenancies now last between two and three years, and 32% last in excess of four years, according to research from the National Landlords Association (NLA).
However, despite the majority of tenants staying put for longer periods of time, 49% of landlords surveyed for the NLA’s latest quarterly Landlord Panel have experienced rental arrears in the last 12 months and 37% are worried about instances of arrears in the months ahead.
Meanwhile, the proportion of landlords who have added property to their portfolio has risen by 2% this quarter (from 10%) with 22% of landlords expecting to purchase additional property in the next 12 months.
However, the NLA added that investment to meet growing property demand seems to be problematic for some, with 31% of landlords unable to expand in the last three months due to difficulties accessing finance.
“Longer tenancies and a lower turnover rate are both signs of much-needed stability for both landlords and tenants in tough economic conditions,” said David Salusbury, chairman of the NLA.
“Private landlords are a key part of the investment mix required to meet the rising need for more flexible forms of housing at a time when demand for rented accommodation far outstrips supply.
“We recognise that the private-rented sector is evolving and it now accounts for 17% of the UK’s housing stock. That’s why this year’s NLA National Conference seeks to educate landlords about their responsibilities, while focusing on the challenge of housing the changing needs of the population.”
