The number of new tenancies in England and Wales has fallen to its lowest level in eight years, with tenants staying in rental properties for longer, according to a new report from the Deposit Protection Service (DPS).
The Private Sector Rental Review, which analyses data from the country’s three government-approved tenancy deposit schemes, found that landlords registered just under 77,000 new deposits between October 2023 and September 2024. This marks a significant decline compared to the 250,000 new tenancies recorded in the same period in 2016-17.
TENANCY LENGTHS AT RECORD HIGHS
The report also highlights a steady increase in the length of rental agreements. The average DPS-registered tenancy lasted 910 days at the end of 2024, up from 789 days in 2021—an increase of approximately four months.
| Year | Average tenancy length (days) |
|---|---|
| 2021 | 789 |
| 2022 | 831 |
| 2023 | 882 |
| 2024 | 910 |
Matt Trevett, managing director at the DPS, said the pace of rental market growth has slowed over the past year. “This is the first time the rental market has grown by less than 100,000 tenancies in any 12-month period during the past eight years,” he said.
“Tenants are now spending just under two and a half years in a property on average, which is around four months longer than in 2021. A combination of high rents and a shortage of suitable rental properties means that it’s less common than ever to see tenants move.”
TENANTS RENTING FOR LONGER AMID HOUSING PRESSURES
The DPS incorporated survey responses from tenants and landlords into its report, revealing a clear shift towards longer rental periods. The proportion of tenants who moved within the past year more than halved from 46% in April 2023 to 20% in October 2024.
Additionally, the number of tenants renting for between one and five years rose from 42% in March 2024 to 54% by October. Meanwhile, 35% of tenants surveyed in October 2024 said they had wanted to move but had been unable to, an increase from 24% in March.
