The rental market has seen a surge in tenants looking for ‘all bills included’ tenancies while those who can are staying put to avoid an average 11% hike in rent in their next home, says Rightmove.
Its latest figures reveal that one in five landlords have seen their tenants staying put for longer with 63% of tenancies lasting two years or more and only 21% staying for less than 12 months.
This surge is also helping build-to-rent gain a stronger foothold in the market – most offer ‘bills included’ deals.
Demand for ‘bill included’ tenancies jumped by 36% versus last year, outpacing the growth in demand for all other features.
This surge in demand may be in part down to housing minister Eddie Hughes, who last month warned letting agents and landlords of ‘all inclusive’ tenancies not to offset higher energy bills by charging tenants extra.
The Rightmove research, which quizzed 1,300 landlords, also found that national asking rents outside London are rising at the fastest rate ever recorded, now standing at £1,088 per calendar month (pcm), up 11% on this time last year.
It is a similar story in the capital where rents are up over 14% to £2,195 pcm per tenancy.
This, the portal says, is because more than triple the number of tenants enquiring as there are rental properties available, making it the most competitive ever rental market.
“Landlords may have been tempted to put their rents up given the high demand from new tenants, but many understand the affordability challenges of rising rents and bills, as our study shows that the majority are charging their tenants the same as a year ago,” says Tim Bannister (pictured), Rightmove’s Director of Property Data.
“Many landlords build up a relationship with their tenants over a number of years, and they will want to keep a good tenant for longer if they can rather than cash in on a rent rise in the short term.”