The Rise of Long-Term Tenancies: Why Landlords and Tenants Are Embracing Stability

As the UK rental market navigates economic challenges, longer-term tenancies are becoming increasingly popular among landlords and tenants alike. A recent survey highlights a shared preference for stability and flexibility, reflecting a shift in priorities amid rising rents and cost-of-living pressures.

Stability in Uncertain Times

The survey reveals that 44% of tenants and landlords favour one-year fixed-term agreements, while 37% prefer periodic tenancies without a set end date. This demonstrates a growing appetite for arrangements that balance security with adaptability.

With rents increasing by 8.4% across the UK in the 12 months to September 2024—and London seeing a 9.8% rise—tenants are turning to longer contracts to lock in current rates and protect themselves from future increases.

Strategies for Retention

Landlords are responding to tenant needs by adopting strategies that encourage loyalty and reduce turnover:

• Investing in upgrades: 30% are enhancing their properties to improve tenant satisfaction.
• Offering incentives: 15% are open to rental discounts for longer-term agreements.
• Providing flexibility: 6% are considering adaptable lease terms.

One landlord explained, “By building transparent relationships with tenants, I aim to create a foundation for longer, more secure tenancies.”

Adapting to Tenant Priorities

Allison Thompson, National Lettings Managing Director at The Leaders Romans Group, notes:

“Economic challenges have highlighted the value of stability for both landlords and tenants. Longer-term agreements allow tenants to secure their homes at current rates, while landlords benefit from steady, reliable rental income.”

This shift towards longer-term tenancies reflects a collective focus on creating a more stable and tenant-centred rental market.

What This Means for the Market

As landlords prioritise tenant retention through improvements, incentives, and flexibility, they are not only responding to tenant demands but also helping to stabilise the rental market. This collaborative approach benefits both parties, fostering stronger relationships and promoting confidence in the market.