With demand continuing to outstrip supply for rental homes, it’s important for landlords to know the value of what their property already has to offer, and which features could be added to attract more renters. Due to less choice on the market for renters, many are willing to pay more just to secure particular features.
According to the Office of National Statistics (ONS), private rental prices paid by tenants in the UK increased by 2.0% in the 12 months to January 2022, representing the largest annual growth rate since February 2017. The largest annual rental price increase was seen in the East Midlands at 3.6%, with the North West and West Midlands both following close behind at 3.1%.
The growth in rental prices has a number of contributing factors. With demand reaching historically high rates, tenants are willing to pay more in order to secure a property with their desired features, rather than losing out to other applicants.
A survey by Upad revealed which features in rental properties tenants could be willing to pay more for. With high prices becoming the biggest obstacle to homeownership, many have turned to renting instead. Because of this, Brits are becoming increasingly warm to the prospect of treating a rental property as a long-term home. The long-term element influences a strong desire to make the rental home they consider moving into as homely and comfortable as possible. To achieve this, renters are displaying a readiness to shell out a premium for a range of features.
Pet friendly homes
The survey found that nearly 1 in 4 tenants said they would pay an average of £50 more in rent per month if pets were allowed in their rental property. Finding rental accommodation which allows pets has never been an easy task, but with so few rental properties on the market, the list of pet-friendly homes shrinks even smaller.
Gardens
Since the pandemic, the demand for private outside space has been on the rise with 18% of tenants saying they would pay more for a garden, at an average of £69 per month in extra rent. Working-from-home culture could also factor into the demand, as people need private spaces to take a breath of fresh air on lunch breaks.
Parking spaces
As well as green spaces, living in town and city centres appears to have risen in popularity since the pandemic, as renters returned to work and local amenities opened back up. Because of this, £50 per month was the average tenants would pay for a guaranteed parking space, with 17% citing this as the most important factor they’d pay more for.
Furnished
15% of tenants said a furnished property was most important to them, and that they’d pay, on average, £163 a month in additional rent for a fully furnished rental. Furnished rental properties offer unmatched convenience, particularly for first-time renters who haven’t yet accumulated any furniture of their own. Furnished rental homes are also an attractive option for those who hope to buy in the future, as they can save on their furniture spending until a later date.
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