Although many private tenants are staying in their homes for longer, strong demand from tenants continues to put pressure on availability, according to the latest Aldermore Buy to Let Index.
The average rental period has increased to 4.5 years, which indicates a certain stability for many tenants who have already settled in their home.
For people on the go, however, the picture is more challenging. Nearly a quarter (23%) of renters have moved in the past year, and the search remains highly competitive.
Of tenants who have moved in the past year, almost two-thirds (63%) say they ended up paying more rent than originally intended in securing their current home.
A similar percentage (62%) say they competed with more potential renters than expected in their efforts to secure a rental property.
Six in ten (60%) indicate that it is difficult to find a suitable property, while more than half (55%) experienced a longer search process than expected.
In some cases, limited availability has left tenants with little choice. Two in five (41%) say they had to move to another area because there was no affordable rental housing where they wanted to live, while over a third (36%) moved further away from work, family or support networks.
Aldermore director of mortgages Jon Cooper said: “Our latest Buy to Let Index shows that while many tenants are staying in their homes for longer, those looking to move are still facing a highly competitive market. Many are finding themselves paying more than they originally expected, and in some cases they are expanding their search into previously unconsidered areas just to secure a suitable home.
“At the same time, the working environment is in favor landlords has become more complex, which threatens to put pressure on the number of available rental properties. Increased regulation and broader economic pressures are forcing many landlords to adapt the way they manage their properties and finances.
“To avoid exacerbating the current challenge facing tenants, the focus must be on maintaining sufficient supply in the private rental sector, to support affordability and give tenants greater choice and mobility.”