In a recent analysis, Zero Deposit has reported a significant shift in living patterns over the past decade, revealing that while homeowners are relocating more often, tenants in the private rented sector (PRS) are staying put for longer periods.
Zero Deposit’s study, which scrutinized government data on the duration spent in various types of properties, highlighted that homeowners now spend an average of 9.2 years in their homes. This marks a notable decrease from the 9.9-year average over the past ten years and represents a 13.9% drop from a decade ago, where the average was 10.7 years. The only year homeowners moved more frequently was during the pandemic in 2020-21, when the average dropped to 8.7 years.
Conversely, the analysis indicated that PRS tenants are now spending an average of 4.3 years in their rental properties. Although this is slightly down from the previous year’s 4.4 years, it is still 12.1% higher than a decade ago when the average tenancy lasted 3.8 years. Over the past decade, the average has been 4.1 years.
Sam Reynolds, CEO of Zero Deposit, attributed this trend to the increasing reliance on the rental market due to the prohibitive costs of homeownership and a shift towards renting as a lifestyle choice. “Over the last 10 years, tenants have grown increasingly reliant on the private rental sector due to the high cost of home ownership and we’ve also seen renting as a lifestyle choice result in tenants staying put for longer,” Reynolds explained.
Reynolds also noted that rising rental costs are a deterrent to frequent moving, as tenants prefer to remain in their current rentals to avoid the financial strain associated with moving and securing new deposits. “With renting itself becoming more expensive, many tenants would rather stay put once they’ve secured a rental property, rather than foot the costs of moving while their original deposit is still being held by their previous letting agent,” he said.
The CEO also emphasized the critical role of PRS landlords in providing stable rental housing, especially as the build-to-rent sector seeks to offer longer-term tenancy solutions. With upcoming legislation such as the Renters Reform Bill poised to enhance tenant security regarding tenancy lengths and eviction powers, Reynolds predicts that the duration tenants spend in rental properties will continue to rise.
“This highlights just how vitally important landlords are when it comes to the rental market ecosystem and why we must encourage investment into the sector, not deter it,” Reynolds concluded.