Landlords are providing their tenants with stable long-term tenancies as people shift away from home ownership toward more flexible forms of accommodation, according to research from the National Landlords Association (NLA).
The findings – from the NLA's latest quarterly Landlord Panel* – show that over a half (54 per cent) of tenancies now last between two and three years, and that almost a third (32%) last in excess of four years.
Despite the majority of tenants staying put for longer periods of time, almost half (49%) of landlords surveyed have experienced rental arrears in the last 12 months and 37 per cent are worried about instances of arrears in the months ahead.
The research also shows that the proportion of landlords who have added property to their portfolio has risen by 2 per cent this quarter (from 10 per cent) with 22 per cent of landlords expecting to purchase additional property in the next 12 months.
However, investment to meet growing property demand seems to be problematic for some, with nearly a third (31 per cent) of landlords unable to expand in the last three months due to difficulties accessing finance.
David Salusbury, Chairman of the NLA, said: "Longer tenancies and a lower turnover rate are both signs of much-needed stability for both landlords and tenants in tough economic conditions.
"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."
(CD/GK)
Construction News
03/09/2012
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