Tenants are staying longer and their rental requirements are changing, says the Association of Residential Letting Agents (ARLA) in their latest market report.

The association states that the average length of a tenancy in the UK has increased to a record high of 20 months, which is attributed to the strong competition from tenants for new rental properties – 58% of ARLA member offices state that there are more tenants than properties available, representing an increase of 2% on the previous quarter’s figure.

Ian Potter, ARLA Managing Director, said, “The Private Rental Sector is clearly picking the slack resulting from a flat housing market and the ongoing lack of mortgage finance. As tenants stay in properties for longer, the importance of regulation in the sector becomes even more pressing.”

The type of tenant seen by letting agents is also changing; 55% of new tenants are couples or young families who are struggling to purchase their first home. When asked, ARLA members said that ‘frustrated first time buyers’ were the most common group of renter that they were encountering, ahead of those who prefer renting; those who have sold an existing property to rent; and of those previous property owners who have had their homes repossessed.

“Renting offers significant flexibility, which can be vital for working professionals who need to move in order to find employment,” said Potter. “However, with an increasing number of families with younger children also looking to rent, having a secure and stable home environment has never been more important.”