In 2024 so far, a decline in the average length of residency has been observed in London and Scotland since Q4 of 2023, according to analysis by TwentyEA. This trend aligns with both regions reporting the lowest annual rent increases.
Whilst rental prices continue to rise, the pace of growth has slowed compared to the rest of the country, so residents in these areas are more likely to relocate sooner. London and Scotland renters have likely become accustomed to high rental prices and perceive these now as the norm.
Meanwhile, across the rest of the country, high rents and demand growth outpacing supply make it increasingly difficult for tenants to relocate.
Analysis by TwentyEA has revealed the average length of residency for each region in the UK, as shown in the table below, along with the corresponding variance:
Katy Billany, executive director of TwentyEA, told EYE: “London tends to take a different trajectory to the rest of the UK and if rents have started to slow there, perhaps other regions will follow suit and subsequently length of residency will drop in the rest of the UK too in the coming months.
“This is a positive sign for letting agents in London and Scotland but for all other regions with lengthy tenancies, there’s work to be done as there are fewer opportunities to generate commissions from new tenants. These agents should focus on improving their retention rates, investing more in comprehensive data technologies helping them to proactively spot market opportunities. Furthermore, letting agents serving landlords on the “Tenant Find / Let Only” agreements should consider moving as many landlords as possible to property maintenance contracts to ensure recurring revenue.
“We’ve also observed many letting agents losing business to OpenRent. Of OpenRent’s 2024 listings this year, 50% of these were previously listed by another agent. This, alongside the increased length of residency in all but London and Scotland, highlights the importance of letting agents prioritising property management agreements to remain profitable.”