Tenants staying longer

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Tenants staying longer
posted Nov 2012

According to research published in July 2012 by the Association of Residential Letting Agents (ARLA), tenants are extending their tenancies due to the current rental demand continuing to exceed supply.

The traditional 6 or 12 month initial fixed-term contract (eg Assured Shorthold Tenancy) may still be utilised but landlords are reporting an average of 20 months occupancy, which is excellent news for landlords as there are less void periods and savings are made on re-letting costs.

Reputedly around half of the new tenants to the market are frustrated would-be first-time buyers, who are struggling to raise the large deposits requested by mortgage loan companies.

The high demand in UK property letting is also good news for landlords in terms of the rental asking price. With strong competition for the better properties (in terms of the property standard and location) rates have increased significantly since January 2012. This also enables landlords to pick and choose their tenants somewhat, and whereas in the past many tenants may have grumbled about paying for the tenant credit check, it is now accepted as the norm.

Due to the current stagnation in the sales market, many sales agents are diversifying into the buoyant rental market, giving landlords more choice in terms of letting and management services.

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