Generation rent

AS THE RISE OF ‘Generation Rent’ occurs across the UK, the Private Rented Sector (PRS) has experienced incredible growth, thanks primarily to more young people choosing rented accommodation over home ownership. PRS developments have also increased in popularity, as investors look to benefit from rising popularity values and rental yields.

For landlords, renting out a property can be a lucrative way to earn extra income. But due to common landlord/tenant disputes, tension can also be created and issues arise. There are a number of key issues that often lead to tension and disagreements between tenants and landlords and the main causes have been uncovered in new research[1].

LIVING SITUATION
The findings identified six in ten tenants feel that renting a property negatively impacts their mental health, with 62% saying they feel either stressed or anxious because of their living situation. The top issue facing renters that contributes to stress and anxiety is repairs to a property not being carried out, with a third (33%) citing this as a reason for their worries. Renters’ stress could be justified, as only a quarter of renters say requested repairs have been carried out to their satisfaction, while almost one in ten (9%) say repairs haven’t been made at all.

INCREASING RENT
Other worries raised by renters include concerns over their landlord increasing rent during the tenancy (27%) and feeling worried about receiving notice to end a tenancy or facing eviction (19%). However, the research suggests renters aren’t the only side feeling the strain.

Almost half (45%) of landlords surveyed have had rent payment issues, while nearly a fifth (18%) have experienced aggression from tenants. Along with issues experienced during tenancies, the research suggests the tension doesn’t stop when the tenancy ends, with 42% of renters revealing they have experienced a dispute with their landlord or agent about their deposit when they moved out of the rental property.

PREVIOUS TENANTS
On the other side, one in three (30%) landlords reported having to redecorate a property when tenants have moved out, with 28% saying they have been left with damage to the property. Perhaps unsurprisingly, 21% of landlords say they were not in a position to return all the deposit.

On average, landlords reported spending £1,770 in addition to the rental deposit on reasonable repairs to damage caused by previous tenants, with almost a quarter (23%) of landlords needing to withhold all the deposit for the same reason. A fifth of landlords (17%) were faced with the stress of tenants refusing to leave when the rental contract ended.

Don’t forget, our professional, friendly advisers are on hand to support you and can help you explore all of your options.

Source data:
[1] Research carried out by Atomik Research on behalf of Admiral Insurance April 2022