Letting agency data shows trend towards long-term renting

Data produced by Scottish lettings agency DJ Alexander Lettings appears to show a growing trend towards long-term letting over buying.

The agency, handling around 4,500 properties in Glasgow and Edinburgh, has canvassed tenants with their leases ending between February and May. 

Only 17 per cent said they were switching to owner-occupation. The remainder said they intended to continue renting, either through trading up to larger accommodation - or in some cases trading down due to affordability issues - or renting in another location as a result of a change of job or lifestyle.

“It is likely that more than 17 per cent of the departing tenants would have liked to become owner-occupiers but like many would-be buyers nowadays are finding deposits a problem. However the results also confirm an increasing trend whereby even tenants who do qualify for a mortgage and can afford the deposit, are actually choosing to continue to rent when the time comes to move on” explains the agency’s associate director, Rob Trotter.

“Our society is becoming increasingly transient; rental accommodation fits nicely with this and will become even more relevant once the minimum lease period is reduced from the current six months under an Act recently passed by the Scottish parliament” he says.

“Another provision of the Act, restricting the number of ways in which landlords can regain control of their properties, effectively strengthens security of tenure and will therefore enhance the appeal of renting among families or others seeking to rent long-term in the same property.”