Tenants Preference For Long Term Fixed Contracts Will Be A Thing Of The Past

Many renters tend to choose the security of a long term tenancy and the majority of landlords are equally as happy to opt for this, obviously after a pilot 6-12 month initial tenancy agreement.

The government’s English Housing Survey for 2018 -19 shows that tenants on average have stayed in their current rented ‘home’ for 4.4 years, this had risen from the previous year’s survey which reported it as 4.1 years.
The survey shows/suggests that over the last ten years tenants have enjoyed the greater security of staying longer in their rented ‘homes’; which reflects landlords are more than happy to accommodate this preference.
However there are a high percentage of tenants that prefer to remain flexible which renting provides for their ‘freedom of movement’.
According to Elisabeth Kohlbach, CEO of a tech-first real estate investment company due to the pandemic crisis many will want a true flexibility, she said: “For residential and commercial landlords alike, long-term fixed contracts will prove less attractive to tenants, who are more likely to adopt a wait-and-see approach while the health situation continues.”
She explains that many people who are ‘forced’ into working from home may become more open about considering the increasing call for an agile workforce, and Kohlbach believes landlords may need to embrace ‘flexibility’ because of this.
She said: “From a residential perspective, landlords will have to adopt a similar degree of flexibility to survive.
“In times of uncertainty, tenants will seek out rental options that enable them to react quickly to changing circumstances and will avoid being locked into long term contracts.
“Landlords adjusting to this demand for flexibility now may well find themselves ahead of the curve in years to come.”
Richard Merrick of PIMS said “As many workers are now having to work from their homes, why would they want short term lets?
“With the economy as it is and the long term negative impact on numbers of businesses and jobs’ survival, many people will find it hard enough to remain employed let alone being able to afford a move after the lockdown has been reversed.”

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