Improving standards in the rental sector are helping to fuel growth, according to Paragon Mortgages.
A new survey by the firm has found that the average length of time spent living in the private rented sector currently stands at 12 years and that 87% of renters now consider it their home. Four out of 10 landlords also reported increased tenant demand in the third quarter.
“Alongside a shortage of housing stock nationally, one factor driving this change is ever improving standards in the private sector,” Paragon said.
The survey found that eight out of 10 renters were satisfied with their landlord, while two thirds of those questioned considered their rented home to be either good or very good value for money.
Paragon noted that the demographics of those renting were shifting, with an increasing proportion of those making a home in the rental sector couples (29%) and couples with children (21%).
John Heron, director of mortgages at Paragon, said: “The message coming through in this survey is that, for many people, the PRS is an increasingly attractive option over the long-term. This in many ways reflects the ongoing issue of affordability in the housing market, simultaneously however, competition and best practice are driving higher standards in the sector – making it a more attractive proposition for both individuals and families.
“This data underscores the value of the private rented sector to the UK’s housing market. The UK’s private rented sector still has some way to go to before it catches up with its counterparts in Europe, but higher tenant satisfaction with both standards and affordability, show that there is room for increased growth in this sector.”
