Those interested in landlord insurance should be prepared for change in the private rented sector, according to the latest research from Savills.
In a survey that questioned 2,800 participants, the firm (in association with YouGov), found that the majority of private renters still saw renting as a step towards home ownership.
Younger tenants are now much less interested in longer tenancy agreements, as flexibility plays a factor with the demographic.
In contrast, older renters still prefer longer rental agreements to suit their needs. However, 30 per cent of renters aged between 35-44 said they did not necessarily need a longer contract.
As a result of these findings, landlords may have to be flexible with the length of agreement they offer due to the needs of different age demographics.
Tenants are also looking for a better standard of accommodation, according to the survey, this factor is more important thee actual price of rent. Landlords may wish to now add greater emphasis on the inclusion of features that renters require. Again, these may change for each individual demographic.
Landlords with urban residences should also consider the property’s proximity to public transport, according to the survey. This is another important factor for professional tenants who live in city centres.
Jacqui Daly, of Savills research department, believes that in order for private renting to develop properly, more government assistance is required in the sector. She argues that a specific policy regarding the private rental property should be introduced.
“This policy should specifically be aimed at encouraging significantly greater supply of an appropriate standard of accommodation on terms that meet the changing needs of tenants,” she said.
Responses to the survey also show that many believe the current cost of house deposits is the main reason they rent.
The forecast suggests that even with government initiatives, such as Help to Buy, encouraging people to enter their property market, the private rented sector will see growth of around one million households in the coming five years.