Longer tenancy agreements help boost returns for landlords
- 26th June 2019
- Landlord Property News
Could the new Tenant Fees Act encourage more longer lasting tenant relationships with landlords?
With the introduction of the Tenant Fees Act earlier this month, landlords will be now picking up increased costs raised at the start and end of each tenancy previously covered off by tenants.
Landlords can reduce the frequency of these charges and achieve higher net returns over the long term by entering into longer lease agreements and retaining tenants.
Longer tenancies are becoming more common according to research from the English Housing Survey which shows that tenants in the private rental sector are staying in a property for an average of 4.1 years – up from 3.9 years in 2017- indeed ludlowthompson’s average tenancy length now sits at 27.5 months.
This is great news for London landlords who are in a particularly strong position to achieve longer tenancies as demand for residential property consistently outstrips supply.
Students in particular are one demographic that is attracted to longer tenancies. The capital is home to several of the World's Top 100 universities which is a huge draw for UK-based and international students. Courses at most London universities are usually 3-4 years in length, meaning students will be looking for residential accommodation throughout that period.
The capital also has the highest retention rate of university graduates in the UK as following on from their studies; many students will also look to stay in the capital, attracted to the numerous employment opportunities on offer.
Large numbers of high skilled graduates also move into the capital from across the UK as illustrated by the 21% of graduates from Manchester-based universities who move to London for work*.
Stephen Ludlow, Chairman of ludlowthompson, says: “Tenancies have been gradually increasing in length over the last decade which is great news for London landlords.”
“Getting the best tenant for your property is something ludlowthompson strives to achieve. Longer lasting tenant relationships help to deliver greater returns over the long term.”
If you are looking for a buy-to-let investment in London or already have a property you want to let out, speak to a local expert today by contacting your nearest office.
Here is a selection of recent reviews of happy customers of ludlowthompson via Google:
Jemma Battison via Google Reviews:
Alex Vine has been fantastic to deal with throughout the process. He was on hand to help with any questions or reservations we had, making what could have been a very daunting experience a pleasant and enjoyable one. I would highly recommend.
Both Natalie and Alex were very helpful, polite and responded quickly to our questions. It was not hard to get hold of them over the phone, thanks for your help. Would definitely recommend :-)
ludlowthompson maintains its transparency by encouraging customer reviews across a number of platforms. Over a three-year period, we ranked number 1 agent in the UK on allAgents out of 15,000+ agents, with 5300+ 5* reviews.
*March 2019, Centre for Cities, ‘Manchester Brain Drain’ study
“Tenancies have been gradually increasing in length over the last decade which is great news for London landlords.”
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