You are here: Home - Better Business - Business Skills -

Renter dissatisfaction comes from misconceptions not poor PRS performance – Rowntree

by: Richard Rowntree - managing director for mortgages, Paragon Bank
  • 01/04/2022
  • 0
Renter dissatisfaction comes from misconceptions not poor PRS performance – Rowntree
We must move past outdated perceptions of the private rental sector (PRS) and see it as part of the solution to the UK’s housing shortage.

I recently read an article that asked who is profiting from the current cost of living crisis.

The short answer was ‘big business owners’, with private rented sector (PRS) landlords mentioned first in the rundown of those who should be blamed for the pressure placed on household finances.

With the English Private Landlords Survey revealing that just under half of landlords let a single property and tax returns highlighting how seven in 10 landlords fall into the basic rate tax bracket, I found this to be an ill-informed opinion.

Unfortunately, this type of viewpoint is all too common. It isn’t just coming from the media – our politicians have added to the ‘renting is bad’ rhetoric too.

With landlords viewed as a wealthy few, profiting from the misery of many, articles and manifestos championing the PRS are unlikely to be well received by the general public. It is important, however, that discussions on solving the UK housing shortage should acknowledge the benefits the sector provides tenants, wider society and the economy.

Central to this is the voice of tenants, those with a very real vested interest with how the sector operates.

 

Our survey says otherwise

To facilitate this dialogue, we commissioned the Social Market Foundation (SMF) to find out how tenants perceive privately renting and what the sector could look like in future.

Surveying almost 1,400 renters, the SMF’s research challenges the notions of widespread ‘reluctant renters’ and rogue landlords – 81 per cent of respondents said that they are happy with their current property, and 85 per cent said they are satisfied with their landlord.

Renters were also found to welcome not having responsibility for costs related to repairs or maintenance, buildings insurance or ground rent. In addition, tenants value how the PRS provides them with the opportunity to live in areas where they could not afford to buy their own home.

Of course, the sector can be improved, and the report highlighted some areas that if addressed could lead to a better experience for tenants. These could be relatively simple changes such as allowing tenants to keep pets or decorate the property. Focus could also be placed on providing tenants with more stability through contracts fixed at a minimum of 24 months.

Perhaps equally telling is the greatest source of tenant dissatisfaction – “being a renter”.

This the sentiment of a minority, 34 per cent of those surveyed, and suggests that those who are downbeat about renting feel this way because of the negative associations attached to the tenure more so than because they are unhappy with their privately rented home.

For me, this shows that many of the misconceptions surrounding the PRS should be contested. If we move on from the outdated narrative where the tenure is viewed fundamentally flawed, we can look to replicate what works and address what doesn’t, doing so in an honest way, without prior assertions.

There are 0 Comment(s)

You may also be interested in