Two thirds of private tenants in London (64%) would rather own than rent while more than half (52%) feel the possibility of ownership has decreased over the last year, research from Kinleigh Folkard & Hayward has revealed.
KFH found the majority of private tenants in the Capital (71%) are happy living in a rented home but only a quarter of renters (25%) want to stay living in long term rented accommodation.
Carol Pawsey, group lettings director at KFH, said: “The desire to own a home does not appear to be diminishing among London’s renters and schemes like Help to Buy, increased mortgage availability and changes to stamp duty have helped ease the path to ownership.
“But high buying costs mean many expect to rent for the foreseeable future and want property that adequately meets their expectations.
“It’s therefore important that landlords, PRS portfolio owners and build to rent developers understand the demands of their customers.”
The London Tenant Barometer 2018 was produced by KFH to gauge tenant sentiment and expectations regarding the rental market across London.
On average, tenants expect to continue renting in London for a little over four years (4.2 years). Nearly half (48%) expected their rent to rise over the next year; just 2% thought rents to fall.
Overall, the expectation among renters was that rents will rise 1.1% on average over the next twelve months.
The highest priority among tenants when choosing property is rental price. Nearly four in five tenants (77%) felt this was important when choosing their current property.
The area of London was the next highest priority (65%) with property size and proximity to transport links the next most important (51% and 47% respectively).
Some of the lowest priorities among tenants are shared inclusive amenities such as gyms, cinema rooms and entertaining areas (5%). Good quality mobile phone reception (7%) and high internet speed (12%) were also some of the lowest priorities.
Pawsey added: “In recent years we’ve seen a rise in the number of new developments offering features such as high-speed internet and communal or shared facilities.
“These are often seen as a way of attracting tenants and standing out from the competition, however, our research suggests developers need to look carefully at what impact these features will have on their bottom line and whether they will make a real difference to the appeal of their properties.
“It’s important they don’t lose sight of what drives tenant decision making more than anything else – price and location.”
The average age of a PRS tenant is 37 years old and nearly a third of tenants (32%) have non-rent paying dependents living in their household.