London-focussed agency Foxtons says the tenancy renewal numbers seen by the company this year are “unprecedented”.
Gareth Atkins, lettings managing director at Foxtons, says: “Steadily increasing demand, severely limited stock and a swift rise in rental prices are all compelling reasons to renew – and renters are responding.
“Through Foxtons renewals department, we have seen a 29 per cent rise in renewals year-on-year versus 2021.
“Renters are also choosing longer tenancies to avoid a market in flux; our deal length for renewals has gone up nine per cent in 2022, reaching an average tenancy of 15.7 months.”
Atkins’ comments come in response to the latest lettings market snapshot produced by Zoopla, which shows that many more renters - facing increased pressure on their disposable income - are deciding to stay in their rental property for longer.
On average, UK tenants are staying in their rental properties for an extra five months compared to five years ago, with the average tenancy length up to 75 weeks, from 51 weeks at the start of 2017.
The portal says this trend has extended beyond lockdowns when the ability to move was hampered and indicates that landlords with tenants in situ may not be raising rents at the same rate as rental growth.
Rental demand is strongest in Scotland, Wales and London, with demand levels more than 65 per cent above the five-year average.
London’s market is also one of the most constrained when it comes to stock levels, with homes available to rent at just over half the five-year average, creating the conditions for the sharp rises in rents.