Why are more tenants now looking for rent with bills included?
A Rightmove.co.uk survey of over 20,000 listings has shown a 38% spike in demand for properties offering rent with bills included vs other search criteria for properties. This is a product of a significant shift in the way tenants are approaching affordability. So how are their attitudes changing?
How are tenant’s attitudes changing?
As we enter a climate of more regular interest rate rises, increasing inflation, and unprecedented utility costs, the cost of living crisis continues to be at the forefront of people's minds.
Renters up and down the UK have had to navigate a rental market where post Covid-19, supply has continued to be an issue, with Rightmove reporting demand for rental properties is outstripping supply 3:1 and rents in the capital up 14% this year.
It’s been reported that rents with bills included average 17% more than rents without bills included. So why are more tenants looking for more expensive rents with bills included?
- Simplicity. With young professionals feeling busier than ever and a rapid increase in products and services that make people’s lives more convenient, there’s no surprise this trend is now extending to the rental market.
- Ease of sharing. It isn’t news that a huge proportion of young people in the capital share with flatmates. It also isn’t news that with that comes friction - setting up and splitting the bills, arguing over who bought the loo roll… These are the things that cause friction, reduce satisfaction and ultimately reduce length of stay.
- Security. People are worried about the cost of living rising and for many affluent young professionals in London, it isn’t necessarily the inability to pay, but the uncertainty that this brings. Paying one single monthly fee brings some certainty to an uncertain world.
At Lyvly, we encourage landlords to offer bills included, as well as regular cleaning of the communal areas and basic consumable items such as washing up liquid and loo roll. These services, which Lyvly manages completely, aim to provide a convenient and hassle-free service for tenants, who get a service that genuinely improves and enhances their life. They can move in with a suitcase and not worry about a thing.
So what impact does this have? Well, if you remove the friction associated with the usual house share, you get happier tenants who get on with each other and stay for longer. For a landlord, vacancy is lower, length of stay is better and rents are higher. We think it’s a win-win and that’s why we’re evangelical about our mission to bring this way of renting to the masses.
If you’re a landlord worried about adopting a bills-included model, contact Lyvly to find out how we can protect you from the increasing costs of utilities, or book a valuation with Lyvly here and see how much more you could be earning.
We’ll be keeping our eyes on the market as this develops, so check back to the Lyvly blog for further updates, drop us your details at www.lyvly.uk/landlords or give us a call on 020 3318 6332 to be the first to receive updates.