In a section of the largest survey of its kind ever conducted, 24% of the 3,500 private tenants felt that they expected to always rent a property. The survey by Knight Frank found that a further 15% said they would be in the sector for a further five or more years.
The survey, conducted with YouGov, also showed that While the difficulties in getting on to the housing ladder are an issue for many renters, nearly a third (32%) of tenants state that they are living in the private rented sector because it suits their lifestyle and/or they don’t want a mortgage.
On average, the maximum tenants will pay on rent is 40% of gross income, although one in ten Londoners will pay more than 50%
The survey also found that of those polled, more than a third of tenants want to live within a six minute walk of their nearest train station or bust stop, with 78% saying they want to be within 1km of transport links
Finding accommodation in a central location is especially important to younger age-groups, with 53% of 18-24 year olds saying they would live in a smaller studio flat in a central location if it made the rent more affordable. Some 39% of under 35s agreed with this.
Grainne Gilmore, Head of UK Residential Research, said: “Our survey shows that the majority of renters do not view the PRS as just a ‘short-term’ move. Less than a quarter of tenants expect to leave the sector within two years. The dynamics of the housing market, where supply has failed to keep up with demand which in turn has played a role in pushing up house prices, has also put home ownership beyond the reach of many young workers, especially in key employment hubs. This, coupled with an increasing mobile and flexible workforce, has led to rising demand for privately rented property,”
Off-street parking is the amenity most private tenants are prepared to pay extra for, although fully furnished flats will attract a premium among younger renters, especially the 18-24 age group, the survey shows.
Tim Hyatt, Head of Lettings at Knight Frank, said: “The rising significance of the private rented sector is creating many opportunities for investors, especially as we are starting to see the advent of large-scale professional landlords. “
