Who are the nation’s tenants, what do they feel about renting and what are their ambitions to buy? Our new UK Tenant Report answers some of these questions.

Based on a survey of over 2,000 residents of the UK’s private rented sector, the report finds that tenants are a diverse group of people, encompassing all ages and the socio-economic spectrum.

The report finds that whilst there remains a strong demand to buy, tenants are happy with their home and their landlord:

• 79% said they liked the property they live in
• 78% said that although they don’t own the property, it feels like their home
• 76% have a positive relationship with their landlord

The report also found that despite the challenging economic environment, tenants feel confident about remaining in their job (93%), being able to afford their rent (92%) and being able to afford the essentials in life (86%). In terms of priority of payments, 88% of tenants would prioritise rent payment over other bills.

Nearly two thirds of tenants would like to own a home, but the ability to do so is being hindered by a lack of active savings. Over a third (35%) of tenants said they were actively saving to buy a home, something that differed significantly between age brackets.

Four in 10 (44%) of those in the 18-34 age group are actively saving, falling to 31% of those aged between 35 and 54 and 11% for those aged over 55. This suggests that the PRS will be a long-term home for those in older age brackets as they don’t actively save towards a house deposit. We cover this in more detail in our report – The Middle Aged Tenant Squeeze.

Paragon Bank Managing Director of Mortgages Richard Rowntree said: “Contrary to the myth about reluctant renters, our research shows that tenants, on the whole, like the property they live in and have a good relationship with their landlord. Of course, many want to buy but there is a disconnect between intention and ability to save for a deposit, and the PRS is there for people who want or need to rent a home.

“In order for it to remain so, landlords need to be incentivised to continue to finance the sector, through both a proportionate taxation system and balanced regulatory environment. Tenants are the group that will suffer through a lack of choice and higher rents if supply into the PRS isn’t expanded.”