UK average tenancy length: How long do tenants tend to rent for?

According to recent UK rental market statistics, almost a fifth (18.8%) of UK homes are privately rented as of 2023. 

If you’re considering becoming a landlord and taking out a buy-to-let mortgage, you may be interested to know that tenants are increasingly staying put in one place for longer.

Average length of tenancy of private renters

According to the most recent English Housing Survey (2022/23), private renters typically stay in one property for 4.3 years (around four years and four months).

The average tenancy length of private renters (in years) 

This is a 16.22% increase in the average length of tenancy since 2010/11, when the typical tenant stayed put for 3.7 years (around three years and eight months).

While the average tenancy length has increased overall between 2010/11 and 2022/23, it reached its longest point in 2018/29 and 2021/22 at 4.4 years (around four years and five months).

Why is the average tenancy length increasing?

Although the average length of tenancy is getting longer, this is not necessarily due to a lack of effort to move. According to a survey undertaken by the Deposit Protection Service (DPS), between March and September 2023, the number of DPS survey respondents who stated they found it ‘difficult’ or ‘very difficult’ to move increased from 39% to 45%.

The increasing cost of living is a clear factor in tenants’ decision to stay or go, with more than three-fifths (64%) of respondents who did move stating that they had to make financial sacrifices to do so. Meanwhile, three in 10 tenants admitted to taking on an extra job in order to fund their move, up from 27% in March 2023.

Average tenancy length in socially rented properties

Although the average length of tenancy for social renters in England is vastly different from that of private renters in terms of length, the overall trend tells a similar story.

Social renters in the UK – those who lease directly from their local authority or a housing association – are also increasingly staying put longer. 

The average tenancy length of social renters (in years)

The average tenancy length for all social renters has remained at 12.2 years between 2019-20 and 2022-23 (the average length of tenancy for private renters also remained the same in these years, at 4.3 years). However, it has increased by 6.09% since 2010-11, from 11.5 years.

Those renting from the local authority typically stay in one home for 13.4 years, an increase of 8.94% from 2010-11 (12.3 years). Meanwhile, the average tenancy length of those renting from a housing association has increased by 7.55%, from 10.6 to 11.4 years.

How can a landlord end a tenancy?

Typically, for tenants on an Assured Shorthold Tenancy, landlords must give two months’ written notice of their wish for the tenant to vacate, using a Section 21 notice.

If the tenant is still in the fixed term period of their contract, the landlord can issue a Section 8 using grounds covered in the Housing Act 1988, including rent arrears or illegal behaviour.

How should landlords determine the length of a fixed-term tenancy?

The legal minimum length for an Assured Shorthold Tenancy is six months, but it can extend up to seven years. However, particularly for new landlords, it can be difficult to decide how long your AST should be.

For landlords who want the security of long-term tenants in their property, you may wish to set the tenancy length for a minimum of three years. While this offers stability for both parties, it can limit the landlord’s ability to adjust rent prices.

In areas of high demand, such as major cities, shorter leases can be beneficial as they will allow the landlord to reset the rent more often, in line with market increases.

On the flip side, in areas of lower demand, longer leases can help landlords secure reliable tenants (and, therefore, income). This reduces the risk of the property sitting empty if they are unable to find new tenants.

Interested in renting a property? Learn more about becoming a buy-to-let landlord. 

What to consider when setting a fixed-term tenancy

Who is your target demographic?

If you wish to be a student home landlord or would like to lease to young professionals, shorter-length tenancies are a better fit, as these groups are more likely to move more often. On the other hand, families look for stability, including easy access to their schools and jobs.

If you want to become a landlord for the former type of tenants, you may need an HMO mortgage. 

Consider the market conditions in the area

Take a look at how the rental market has performed over the last two years. If rents are consistently rising, you may not want to tie yourself to a long-term contract, as it will be more difficult for you to adjust the rent.

Include a break clause

Offering a break clause, particularly in longer leases, allows both parties to end the agreement early, under specified conditions.

If you’re after more advice and guidance like this, visit our comprehensive landlord hub.