The number of new tenancies in England and Wales has fallen to its lowest level in eight years, according to a new report by The Deposit Protection Service (DPS).
The DPS’ Private Sector Rental Review analysed data from the three Government-approved tenancy deposit schemes and revealed a significant decline in new deposits registered by landlords. Between October 2016 and September 2017, landlords registered 250,000 new deposits with these schemes. However, this figure plummeted to just under 77,000 during the same period in 2023-24.
The report also highlighted a rise in tenancy durations. The average length of a tenancy registered with the DPS increased by 121 days over the past three years, growing from 789 days in 2021 to 910 days by the end of 2024.
Increasing Tenancy Durations (2021-2024)
| Year | Average Tenancy Length (Days) |
|---|---|
| 2021 | 789 |
| 2022 | 831 |
| 2023 | 882 |
| 2024 | 910 |
Matt Trevett, Managing Director at The DPS, commented on the findings, stating: “While the overall number of tenancies in England and Wales continues to grow, the rate of growth has slowed over the past year.
“This marks the first time in eight years that the rental market has expanded by fewer than 100,000 tenancies in a 12-month period.
“On average, tenants are now staying in properties for just under two and a half years—about four months longer than in 2021. High rents and a shortage of suitable rental properties mean that tenants are moving less frequently than ever.”
The DPS report also incorporated data from its latest surveys of both tenants and landlords, further underscoring the trend of declining mobility in the rental market.
Key Survey Findings:
- The percentage of tenants who reported moving within the past year more than halved, dropping from 46% in April 2023 to 20% in October 2024.
- The proportion of tenants who had rented for between one and five years rose by 12 percentage points, from 42% in March 2024 to 54% in October 2024.
- By October 2024, 35% of tenants surveyed stated they had wanted to move but were unable to do so, up from 24% in March of the same year.
The findings highlight a shifting landscape in the private rental sector, with longer tenancy durations and fewer relocations pointing to increasing pressures on renters amid high costs and limited availability of rental properties.