06/02/2012
Category: Landlords insurance
Landlords are having to adapt to tenants spending longer in properties than in the past, after a survey revealed an increase in the average length of tenancy.
The fall in moves is linked to a general decrease in activity associated with periods of economic hardship, according to the Tenancy Deposit Scheme.
Spokesperson for the dispute service, Malcolm Harrison, does not think it would be a surprise if people are now spending longer than two years in a rented home.
This may prompt some landlords to re-evaluate their landlords insurance, to ensure they are comprehensively protecting themselves in case of long-term damage to their property and assets, which may result from more prolonged lettings.
Longer lettings increase the likelihood that appliances such as microwaves, washing machines and televisions will break or need replacing, so keeping up regular inspections is recommended to stay on top of maintenance.
"The probability is that people are looking to move and stay for longer than they would have done before," he explained, adding that just five years ago the average tenancy was only around 14 to 15 months.
Demand for lettings has increased during the economic downturn, which has resulted in higher rental yields due to a lack of supply.
Established landlords with multiple properties are well placed to capitalise on this trend, with recent predictions from Halifax suggesting this trend will continue throughout 2012.
Six in ten Britons estimate that the cost of renting in the private sector will increase over the next 12 months, according to research by the lender, while just three per cent expect a drop in rent.
Deposit scheme spokesman Malcolm Harrison explained: "People don't know what is happening [with the economy] - we are in a recessionary climate.
"They may be in work and everything is going well with their jobs, but they are nervous so they are not going to make any major moves. This will decrease activity."
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