Tenancies ‘increasing in length’
Longer-term tenancies in the UK are increasing as the rental market continues to become more competitive.
The pressure on people trying to buy a property at the moment is leading first-time buyers to continue renting for longer than they would like, so much so that PriceOut is continuing to lobby the government to help young people get onto the property ladder.
Gary Styles, strategy, risk and economics director at Hometrack, said that longer tenancies are becoming more common, particularly with the recent shift towards rental and away from owner-occupation.
“The need for that guaranteed yield and locking in the yield could be a factor behind that. For those properties where there are likely to be void periods and issues then locking those yields in would be more attractive [to landlords],” he explained.
Mr Styles comments come after Savills revealed that annual prime rental growth in London slipped back into negative territory for the first time in two years, a fall of 0.4 per cent year-on-year.
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