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Where are the opportunities in the private rented sector?
Emily Hollands - Group Head of Distribution | 16.05.2024
The private rented sector (PRS) is the second largest tenure, representing nearly one-fifth (19%) of households in England.1
According to the RICS UK Residential Market Survey, tenant demand has edged up in the lettings market. At the same time, landlord instructions continue to dwindle, putting upwards pressure on the amount of rent tenants are charged.2
To help make sense of this changing market, OSB Group (comprised of Precise, Kent Reliance for Intermediaries and InterBay), conducted research through the Landlord Leaders community to explore the average profile of a private renter.
The Landlord Leaders community is our membership group of individuals focused on creating a fairer and more sustainable Private Rented Sector. Find out more
Characteristics of private renters
Work status
More than half (53%) of tenants in the private rented sector work full-time and nearly one in four (23%) work part-time. The smallest proportions of renters are 6% students and 4% retired with a private or state pension.
Personal income
Of those surveyed, there were significantly more private renters earning between £21,001 to £28,000 than any other income range. Location Most private renters favour towns and cities, choosing to live in a city suburb (27%), a small town (24%), the city centre (21%) or a large town (19%). Meanwhile, the remaining proportion of renters live in villages, market towns and remote rural areas.
Household type
The majority (54%) of private renters live in a house, one-third (36%) live in a flat or maisonette, and 8% live in a room in a house or flat.
Anticipated duration of tenancy
Finally, one in three (33%) tenants are expecting to live in their current home for one to two years. And nearly one in five (19%) expect to live in their current home between two and five years.
The average profile of a private renter
- Works full-time
- Earns between £21,001 to £28,000
- Lives in a city suburb
- Lives in a house
- Expects to live in their current home for one to two years
How we could help
Even with a strong idea of what the average profile of a private renter looks like, we understand that every buy to let case is different. That’s why we take a common-sense approach and view cases with a willingness to consider those that fall outside of standard criteria.
We could support personal ownership landlords, first-time landlords, limited company landlords, portfolio landlords and HMO/MUFB landlords. To find out more about our products click here or you can start a conversation with our team.
OSB Group worked with Trajectory Partnership to survey 1,500 renters, 500 recent home buyers and 500 future renters (currently living with parents about to sell), online during July 2023. The sample’s private/social tenure and income was representative of the national average. The sample was divided into seven statistically distinct segments using a two-step cluster analysis, based on property priorities, property emotions and landlord relations measures, derived from factor analysis. Five in depth interviews were conducted with priority segments.
1 English Housing Survey 2021 to 2022: private rented sector
