The Rise of Longer Tenancies

Longer tenancies have gained attention recently, with some build-to-rent providers offering tenants the option of three-year contracts, as opposed to the usual six-month or one-year assured shorthold tenancies (AST). The government has also taken notice and consulted on whether all tenants-increasingly-love-corporate-landlords'>landlords should offer longer rental periods to tenants.

Tenant Preferences: Flexibility vs Stability

While some tenants, particularly those with children and stable work commutes, may welcome the stability of longer tenancies, others, especially younger people without family commitments, prefer the flexibility of shorter leases. This flexibility allows them to move more freely without being locked into long-term agreements.

Survey Insights: Tenancy Duration Preferences

According to a survey by AXA, six out of ten renters are satisfied with tenancies lasting 12 months or less. The survey also found that two-thirds of tenants would opt for a shorter tenancy, even if given the choice, while a quarter of renting families would prefer long leases similar to those common in mainland Europe.

Poll Results: The Demand for Longer Tenancies

A poll of 2,000 tenants by online letting agent MakeUrMove showed that only 7.2% of tenants would prefer a three-year tenancy. About a third of those polled favored a 12-month tenancy, and 20% wanted contracts lasting no longer than two years. However, nearly 29% of tenants expressed a desire for even longer leases, with 43% already spending more than five years in their current rental properties.

The Tenant Fees Bill: A More Popular Option

While longer tenancies may not be universally favored, the Tenant Fees Bill currently making its way through Parliament seems to be a much more popular proposition. According to AXA, six in ten renters report having paid fees to tenants-increasingly-love-corporate-landlords'>landlords and letting agents, which the Bill seeks to abolish. These fees often include charges for starting, ending, or renewing a tenancy agreement.

The Debate Over Longer Tenancies and Tenant Fees

The popularity of the Tenant Fees Bill may be an indication that tenants prefer to see changes in how rental fees are structured rather than adopting long-term leases. With many renters already dealing with additional costs like credit or reference checks, the promise of lower fees and more affordable renting could have greater appeal than longer tenancy options.