Wide disparities in the rents, personal finances and aspirations of tenants in the private rented sector have been revealed in a survey carried out by the Nationwide Building Society. After paying all of their bills more than a third of tenants (36 per cent) exist on £100 or less each month, while one in eight (12 per cent) say they have no disposable income left at all, including some 17 per cent with children in their household. At the other end of the spectrum, one in sixteen (6 per cent) claim they have more than £1,000 left to play with each month, including 11 per cent of those based in London. Among the headline findings from a survey of more than 2,000 tenants of private landlords, were the following:

• Almost a half of tenants are renting because they cannot afford to buy their own home, while one quarter are saving up for a deposit;
• One in three renters live alone, rising to 45 per cent of retired renters and 40 per cent of those who are unemployed;
• One in eight have lived in their current home for at least 10 years, although the average length is four years; and
• Men are left with over £100 more disposable income each month than women, on average.

Almost half of those surveyed (46 per cent) said their main reason for renting was they could not afford to buy. For more than one in ten (11 per cent) a change in circumstances, such as the breakdown of a relationship, leaves them renting – and the likelihood of this grows with age, with 15 per cent of over 55s citing this as their main reason for renting. The stereotype of students eeking out a chaotic existence in a communal house no longer typifies those renting a home from a private landlord. Tenants are more likely to be couples (47 per cent) or those living alone (30 per cent), rather than young people living with university friends (7). More than a third of men surveyed rent a home alone, compared to one in four women, with lack of affordability or a change in life circumstances most likely to be the cause.

European trends

Nationwide’s Director of Specialist Lending, Paul Wootton, said: “It’s clear renting is not a one size fits all experience. With one in five renting a home and many expected to rent throughout their lives, tenant’s priorities differ according to where they are in their life, in the country or in their own housing journey. “Where older generations assumed they would own their own home, for many today long-term renting is considered the new housing normal – as it is in much of Europe. We’re already working with landlords to ensure a private rented sector that recognises different needs and works fairly for everyone.” The most important consideration when choosing a home to rent for one in four (25 per cent) was cost or affordability. For one in ten it was location or availability. One in 14 chose based on the standard of the property, while one in four chose on its layout or facilities. One in 20 selected a property based mainly on whether the landlord accepted pets and one in 50 chose a property on whether landlords accepted benefit claimants. Once they had made the decision to rent, a third found their new home through an online website. More than a quarter sourced their home through a lettings agent. One in five turned to family and friends for help to find a home while one in 25 found their property through an ad in their local newspaper. Tenants renting from a private landlord stay an average of four years and two months, though almost one in three stay for five years or more and one in eight stay for a decade or more. According to the study, the older the tenant, the longer they seem to stay, with average length of tenancy duration for 18-24 year olds at just over a year, 25-34 year olds at two years four months, 35-44 year olds at four years five months, 45-54 year olds at five years eight months and those 55+ staying six years nine months in the same home.

Financial worries

The average UK monthly rent is £562.05, though one in seven pay more than £800. After paying for food, rent and bills, the average Brit has £314.45 in monthly disposable income left – although men are left, on average, more than one hundred pounds better off than women (£372.84 v £264.69). Almost a quarter were trying to save towards a mortgage deposit or to buy a new home, and one in 10 towards a car or other transport. One in 14 were saving for children, one in 20 for a new rental deposit, five per cent for furniture or white goods, and four per cent for further education or training. However, three in 10 were not saving at all, with 85 per cent of them stating it was because they could not afford to. One in five believe the worst thing about renting is that it is a waste of money because others (their landlords) are profiting and this is felt most keenly among 25-34 year olds. Lack of security, including not knowing when they would be asked to leave, was the most concerning aspect for one in seven, though most acutely felt by those not working and those with children. The major gripe for one in sixteen is the repeated cost of moving, and for another six per cent the poor quality of their accommodation. For one in 25 tenants the worst thing about renting is not being allowed to have the companionship of a pet living with them.