Scottish Rental Culture Is the Happiest but Under Threat from Rental Increases

Scottish rental culture is the happiest – but under threat from rental increases

14 September 2016. According to new research by AXA*, Scotland’s rental culture is happier, friendlier and more settled than thatsouth of the border. More tenants rent as a matter of choice, and financial confidence is rising among those who don’t. Fast rising rents could jeopardise this positive trend, however, warns the insurer.

The study found that 45 per cent of tenants in Scotlandrent as a matter of choice. Of these, 22 per cent say they find the tenant lifestyle offers them greater freedom, while a similar number name ease of relocation for job opportunities as the primary reason to rent.

Half of tenants still rent out of necessity, rather than choice, however. A third say they want to buy but have no prospect of doing so (down from 54 per cent three years ago); a further 17 per cent say they want to buy and are saving for a deposit (up from 11 per cent in 2013).

Scottish tenants expect to rent for an average of 9.5 years in line with the overall British trend. They are generally happier at the prospect than English and Welsh tenants though: just 17 per cent say they are unhappy with the tenant lifestyle.

Relationships with landlords also tend to be warmer in Scotland: fewer than half of English tenants say they know their landlord well, compared to more than 70 per cent of Scots. Scots are also twice as likely to say their landlord has gone above and beyond for them – by redecorating at their request or including free services in their rent.

While Scottish tenants traditionally stay longer in each property, that does look set to change as rents continue to rise at a faster rate than in London. Eight in ten will shop around for a new property in the coming year, citing price as the primary reason.

Few tenants plan a long-term future in their current location: two thirds will migrate to another region of the country or overseas within five years. Edinburgh is the most unsettled location: just three in ten of the city’s current tenant population will still be there in 2020.

“Scottish tenants tend to know their landlords and are more comfortable with the idea of renting,” says Darrell Sansom, Managing Director at AXA Business Insurance. “More Scots are renting out of choice than necessity, and are using the opportunity to follow job opportunities that it allows. Edinburgh, in particular, emerges as a ‘stepping stone town’, where tenants stay for a short while to boost their careers and incomes, before settling where house prices are cheaper.”

“The concern is that more tenants are choosing to move on, not for opportunities, but in response to rising rents. We know rents have increased faster in Scotland than other parts of the country with equivalent income levels. And this is a threat to Scotland’s happier and friendlier rental culture.”

“As an insurer on this market, we know that when tenants have to move on constantly, it brings insecurity to both sides in the agreement. Tenants are less able to put down roots in one place, and have less financial security. Landlords, meanwhile, rarely benefit from short-term increases, if it means they have a high turnover of tenants – with all the disruption, uncertainty of income and increased wear and tear that it brings”.

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Amy Needham, PR & Communications, , 07434804059.

Notes to Editors

*AXA surveyed 1,000 tenants in Great Britain in July 2016, and conducts a quarterly survey of landlords (sample size: 300).

About AXA Business Insurance

AXA Business Insuranceis part of AXA Insurance UK plc, which belongs to the AXA group of companies. With us, you choose the business insurance that’s right for you. We offerpublic liability,employers’ liabilityandprofessional indemnityinsurance online to start ups, sole traders, self-employed people and small businesses. In addition we offervan insuranceandlandlord insurance. AXA Business Insurance also runsBusiness Guardian Angelwhich provides resources to help protect and grow small businesses. You can follow AXA Business Insurance on Twitter @AXAbizteam for business insurance help, and find AXA Business Insurance on Google+ and Facebook – and you can watch expert guides and business case studies on the AXA Business Insurance YouTube channel.

About AXA

The AXA Group is a worldwide leader in insurance and asset management, with 166,000 employees serving 103 million clients in 64 countries. In 2015, IFRS revenues amounted to Euro 99.0 billion and IFRS underlying earnings to Euro 5.6 billion. AXA had Euro 1,363 billion assets under management as of December 31, 2015. In 2015 Interbrand ranked AXA the 1st insurance brand worldwide for the 7th consecutive year.

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