With almost three-quarters of Brits aspiring to buy their own home, OSB Group launched a study to find out why renters want to leave the private rented sector (PRS) and what landlords can do to encourage good tenants to stay.
In its Bricks to Belonging report, in partnership with consumer psychologist IB and shared exclusively with Mortgage Solutions, OSB Group’s research reveals that tenants prioritise strong relationships with their landlords, the autonomy to personalise their living spaces, and a sense of control over their environment.
With an objective to establish why homeownership is still the aspiration of many, the research was subsequently able to identify where renting might be missing the mark.
While the psychological drivers of behaviour sit behind the three big demographic influences – being young to middle-aged, more highly educated and with higher income – if ignored by landlords, they could propel renters into homeownership sooner than they had planned.
Ahead of the launch, Neil Richardson (pictured), chief sustainability officer at OSB Group, sat down with Mortgage Solutions to talk through the findings of the report and what landlords can do to retain good tenants for as long as possible.
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What were the most surprising findings to come out of the report?
While there were many interesting findings, there were a few points that stood out for me.
The research showed that the fourth-most predictive factor in individuals wanting to buy a home was the relationship with their landlord. What’s clear is that we need to remember that both sides of the relationship are human and that this is not simply a business transaction.
As humans, we tend to remember negative experiences over positive ones. Therefore, regardless of how many positive actions a landlord has taken, one small one could negatively impact the relationship.
Do you think landlords place enough importance on establishing positive relationships?
Historically, landlords have often been viewed as only interested in making money, but we know from previous research that this is not the case. Many landlords are putting the tenants at the heart of their business models and approach to housing.
Outside of the property sector, when a business owner launches a product, they often do extensive research to understand their audience and target market. While there are subsectors of the property market where this may be the case – for instance, a landlord with student accommodation – many may not have the in-depth understanding of tenants’ needs and desires. This is in part due to the fast-moving nature of the market, but when landlords can get that additional insight on their tenants, it goes a long way to starting the relationship on a positive note.
Practically, what can landlords do to create a positive relationship and encourage tenants to stay for the long term?
There are some small actions that landlords can do. These include creating open, two-way communication channels with the tenant, whether this be with the landlord directly or through a carefully selected letting agent.
Tenants also expect their landlords to be responsive to repairs or issues with the property, and therefore ensuring these are reacted to in a timely manner is important.
Emotionally, tenants want to feel at home and that they have a level of control over their property. For landlords, being open to tenants personalising their space can be a great way to engage with tenants and give them the control or flexibility they truly desire. It is also likely that if they can decorate the property in a certain way, they will stay in the tenancy longer.
The introduction to the Renters’ Rights Bill plans to help provide a better tenant experience and security. This includes the right to request a pet, which is something that might not have previously been an option for tenants.
What’s the most common action a landlord does that sours the relationship?
Last year, our A Future Tenant Standard research showed that 59% of tenants had experienced rule breaches from landlords, and 37% felt that their landlord had cut corners when it came to repairs. These actions are likely to cast the landlord-tenant relationship as negative.
However, these are simple actions that can be avoided to achieve a strong and positive relationship, and we know that the majority of professional landlords work hard to ensure they are not doing anything that would sour the relationship.
In the report, you talk about the importance of managing relationships with letting agents. What tips can you give landlords?
When we took this research to the Landlords Leaders Community, a network OSB Group convened in 2023 to help create a fairer and more sustainable PRS, we discussed how important the role of the letting agent truly is. We understand from this research that, for tenants, it does not matter whether the relationship is direct with the landlord or intermediated by an agent.
This really illustrated the importance of a landlord appointing the right agent who will embody the values and principles of the landlord and therefore have a positive and meaningful impact on the relationship with the tenant.
If landlords are operating through a letting agent, it’s crucial to ensure their values align. Clear terms of engagement need to be set, as you would with any other type of third-party professional. If, as a landlord, you value client-centricity at your core, then your agent should put the same emphasis on it.
Do you think landlords see efforts to create a positive relationship time-consuming and costly when they can simply collect the rent each month for less effort?
Professional landlords are seeing the benefit of building strong tenant relationships, with the upside being better tenants who stay in properties for longer. High turnover of tenants in a property is costly, with potential repair and refurbishment costs, possible deposit disputes, void periods and likely costs associated with attracting new tenants.
All landlords want tenants that treat a property like their own and maintain it while they live there. By investing time in the relationship, it is likely to save the landlord money in the long term.
