A recent investigation by Monta Capital, a boutique real estate investment manager, has shed light on the UK rental market, revealing that a staggering 85% of tenants are renting out of necessity rather than choice. This insight comes from a survey conducted with 1,586 renters, aimed at understanding the motivations behind renting and the experiences of those living as tenants. Thomas Balashev, Monta Capital’s Chief Executive, emphasised the duty of developers to provide quality homes, especially considering the demand for longer-term tenancies among renters.
The Long-Term Rental Trend
The survey unveils that a significant portion of tenants have been in the rental market for an extended period, with 24% renting for 6-10 years and 20% for more than 20 years. This long-term engagement with the rental market underscores the lack of choice many face, with only 15% of respondents stating that renting is a preference for them.
Challenges and Desires of Renters
Tenants have voiced several concerns over their years of renting, with 33% troubled by the high costs and 35% worried about the lack of security due to short tenancy agreements. A notable 41% of renters believe that longer tenancies would greatly improve their rental experience, providing stability and the opportunity to establish roots without the fear of unexpected eviction.
Despite the challenges, there are aspects of renting that tenants appreciate. The ability to live in desirable locations or homes that would be unaffordable to buy is valued by 31% of tenants, while 26% enjoy the absence of mortgage debt, and 24% cherish the flexibility renting offers in terms of mobility.
Home Ownership: A Distant Dream for Many
When contemplating the future, 43% of renters see no path to owning a home, primarily due to financial constraints. Among those who aspire to buy, 19% believe it will take up to a decade to achieve this goal, with less than 60% confident in their ability to purchase a home within that timeframe.
A Call to Action for Quality and Security
Balashev draws a powerful analogy between the obligation to provide nutritious school meals and the duty to offer high-quality rental homes, stressing the moral imperative to ensure rented properties meet high standards. He advocates for a shift in the rental market to embrace longer tenancies, which would benefit not only tenants but also investors, by providing greater security and potentially increasing property values.
This report from Monta Capital highlights the critical need for change in the UK’s rental market, urging developers, landlords, and the government to work together to improve the living conditions and security of the nation’s renters.
