New data from FCC Paragon suggests that the proposed Renters’ Rights Bill (RRB) may be out of step with tenant preferences, as demand for long-term rental contracts continues to far outpace that for short-term lets across Great Britain.
The legislation, currently under consultation, proposes to eliminate fixed-term tenancies in favour of open-ended agreements.
While positioned as a move to increase flexibility for renters, industry research indicates that the overwhelming majority of tenants continue to prefer the stability of long-term arrangements.
FCC Paragon’s analysis of demand data for short-term residential lets (excluding holiday rentals) found that just 10.4% of short-term rental properties on the market had secured tenants. In contrast, 25.2% of long-term rental properties were let agreed over the same period – demonstrating a 14.8 percentage point gap in favour of longer-term tenancies.
REGIONAL DIVERGENCE
The divergence in demand becomes even more pronounced at the regional level. In London, only 7.1% of short-term lets had been let, compared with 21.8% for long-term properties. Similar patterns were observed in the North East (7.8%), Scotland (8.3%) and Wales (11.6%).
In the South West, where demand for long-term lets reached 30.6%, the gap widened to nearly 19 percentage points compared with short-term lets at 11.7%.
Even in regions where short-term demand appeared relatively strong – such as the East of England and North West, at 34.1% and 22.5% respectively – long-term lets still commanded slightly higher tenant interest, at 35.6% and 23.3%.
LONG-TERM STABILITY
The figures challenge assumptions that scrapping fixed-term contracts will better reflect tenant needs.
While the Renters’ Rights Bill aims to increase mobility and tenant protections by making all tenancies periodic by default, the data implies most tenants are not seeking short-term flexibility but rather long-term stability.
The findings also raise questions for landlords, many of whom are concerned that losing the ability to offer fixed-term tenancies could reduce predictability in managing rental portfolios.
Although tenants will retain the ability to leave with relatively short notice under periodic arrangements, the underlying demand trend suggests most will continue to stay for extended periods, provided the relationship with the landlord remains positive.
LANDLORD CONCERNS
Bekki Leaves, Managing Director of FCC Paragon, says: “Landlords are understandably concerned about what impact the Renters’ Rights Bill will have on their businesses, not least the sections of the bill that deal with tenancy agreements and evictions.
“By installing assured periodic tenancies as the new norm, the RRB eliminates a landlord’s chances of securing the guarantees of a long-term agreement and as such places power firmly in the hands of the tenant.
“On one hand we have landlords completely unable to end contracts with the first 12 months, while on the other tenants are free to leave at any time by providing a short notice period.”
SHIFTING THE BALANCE
And she adds: “Rather than create fair equilibrium, this proposal seems to shift the balance entirely in favour of the tenant, but the lack of appetite among tenants for short-term rentals actually suggests that the Renters’ Rights Bill won’t make an awful lot of difference.”
“The majority of landlords and tenants prefer long-term contracts thanks to the security and stability they provide.
“Even if the RRB does come into effect, tenants will still prefer to stay in their homes for longer periods of time, which means for good landlords and good tenants, it will continue to be business as usual.”
