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New ‘tenants charter’ to have greatest impact on over 35s

Tuesday 1st October 2013

A new ‘tenants charter’ that allows private tenants to demand longer rental agreements is likely to have greater impact among the over 35s, according to a Savills/YouGov exclusive survey of 2,300 tenants.

Under new model tenancy agreements, unveiled by Eric Pickles, the Communities Secretary, tenants will have the right to demand longer tenancies of two to five years. Currently most rental agreements last between six and 12 months.

The new research gives property investors an insight into tenants’ needs and aspirations, finding that 35 to 44 year olds agreed on the need for longer term tenancies while 31% disagreed. In the 45+ age bracket, 48% agreed on the need for longer tenancies while a much lower 17% disagreed.

However, flexibility was prized among younger renters with 56% of those aged between 18 and 24 years stating that they disagreed with the need for longer tenancies. Only 17% though longer tenancies are necessary.

This possibly reflects the idea that renting is still seen as a short-term situation on the route to home ownership.

There was almost an even split among those aged between 25 and 34 years with 33% agreeing with the statement that longer tenancies were necessary while 39% disagreed.

Susan Emmett, director of Residential Research Savills, said: “The desire for longer tenancies is stronger among those over the age of 35. This is the age group more likely to prize stability as many may be raising a family and need to stay put for longer. Younger tenants, however, prefer a more flexible arrangement.”

“We don’t believe that new legislation is necessary. It is possible for landlords to offer three year tenancy agreements within the existing legal framework as we have seen in the East Village development in Stratford. Longer tenancy agreements are more likely to appeal to institutional investors with big portfolios rather than individual buy-to-let landlords.”

              

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