SARAH GORDON discovers tenants are staying put

Increasing numbers of tenants are opting for the security and stability of renting their properties for longer periods due to the current economic downturn.

Felicity J Lord Lettings has seen average rental periods increase from nine months to around 14 months as less people enter the property market.

Lettings manager of the Blackheath branch, Paula Weston, said: “We have noticed the number of people terminating their leases has greatly reduced and people are staying where they are.

“Some are concerned about their employment prospects and the squeeze on credit so are plotting a sensible course to keep them on a steady path during the months ahead.”

Some would-be first-time buyers are waiting for the property market to reach its lowest point before considering buying and many are unable to raise the high deposits needed to secure a mortgage.

The Council of Mortgage Lenders reported only 33,000 mortgages were approved nationwide last November, down 59 per cent from the same month in 2007.

Greenwich tenant James Pilbeam, 25, said: “I had been hoping to buy a flat in London but I’m currently renting as I can’t get a decent mortgage and I’m a bit worried about making such a long-term commitment at the moment.”

With high mortgage repayments and repossessions dominating the headlines many potential buyers are put off entering the market instead hoping to take advantage of cheaper properties and savings passed on by banks when confidence has returned.

Bill Russell, branch manager at Langford Russell in Bromley, said: “We have a lot of applicants at the moment and more stock than we ever have done so there is a great choice available for those who want to rent.”

He confirmed the trend for tenants to rent for longer and with more choosing a 12-month contract instead of a six-month and some opting out of a break clause.

With more and more people letting their properties instead of selling, it is a tenant’s market and people applying to letting agencies will often have several ideal properties to choose from.

The Residential Landlords Association claims some residential landlords are following commercial landlords and offering deals and incentives for those who choose to rent for a period of time.

Mr Russell said: “Landlords are definitely having to be more flexible in order to attract tenants. Some have dropped rents by £200 to £300 as they would rather earn less each month than have an empty property.”

Although mortgages do not favour those entering the property market at the moment it seems good deals and secure, long term rental periods are available to those who choose to wait out the current instability before buying.