Tenant Survey 2017: Meet the Tenants

An analysis of the key drivers in the market, coupled with the outlook for household growth over the next five years indicates that growth in the sector will continue, with some 5.79 million households in the PRS by the end of 2021, up from around 5 million today, according to Knight Frank forecasts.

The growth of the PRS has been spurred by conditions both in the housing and labour markets.

Younger workers especially are taking advantage of the increased flexibility of renting as a tenure which allows moving between locations without any of the costs associated with buying or selling a property.

Affordability constraints in the sales market are also curtailing some tenants’ plans for house purchase, resulting in a longer stay in the PRS as they save for a deposit.

There is also growth in the PRS at the more economic end of the housing scale.

As part of a series of posts we look at a number of topics directly affecting the Private Rented Sector including identifying and analysing renter profiles and exploring the motivations behind their lifestyle choices.

In this specific post we look at the key drivers and influencing factors behind respondents' decisions to rent. 

Our goal is to drill down below the headline findings, pinpointing tenant groups and identifying their particular priorities – helping inform the market on a more localised basis.

Who is renting?

• The most prevalent type of household in the private rented sector is couples living without children, followed by those living on their own.
• Together, these households account for 59% of those in the private rented sector.
• Around a quarter of households in the PRS are families with children, while, across the UK, 12% of households in the PRS are sharers.
• In London however, the proportion of sharer households rises to 26%. 

Why are you renting? 

• According to the survey results, 37% of renters are in the sector through choice rather than issues around the affordability of owning a home.
• When asked to choose why they were renting, they identified factors such as the flexibility of renting, not having the responsibility of owning, or living in an area where they couldn’t otherwise afford to live.
• In terms of potential homeownership, saving for a deposit for a house was the most quoted reason for renting with 30% of respondents citing this as a factor.

In three years' time...

68% of tenants expect to be living in a rented property compared with 32% who hope to become homeowners.