Understanding what tenants want is essential to building a successful property investment strategy. By having a gauge on the current trends, needs, and laws surrounding tenancy in the UK, buy-to-let investors can secure properties that attract and retain reliable tenants. In this article, we will explore what tenants want in a rental property and how landlords can best meet these expectations, and what this will mean for their investments.
The Current State of Tenancy in The UK
The UK rental market has experienced considerable change within the last decade. Approximately, 19% of the UK’s population currently live in privately rented accommodation, almost double the 10% of the population who were renting in 2000.
And within this 19%, 42.6% are aged between 16 and 34, compared to the 26% of renters who are aged 55 and over.
Today’s tenants tend to be young and are driven to renting by a variety of factors:
- Rising house prices – The increase in house prices over the last 25 years has made homeownership difficult, with renting a more affordable option.
- Career and educational opportunities – Younger people often relocate to major cities like London, Manchester, and Liverpool to pursue education or careers, where renting is more practical.
- Flexibility – Renting offers the freedom to move without the long-term commitment of owning.
- Higher quality rental options available – Today’s rental properties are some of the highest quality available on the market. Overall packages sometimes include concierge services, gyms, and communal work spaces, which can be more appealing than home ownership.
What do Tenants Value in a Rental Property?
When deciding where to rent, tenants evaluate a property based on its qualities and what it offers. Here is a breakdown of the key features tenants typically look for:
Good Location
‘Location, Location, Location’ is the adage most commonly associated with the purchase of property, and for good reason. A property that is located in close proximity to shops, restaurants, cafes, parks, and employment opportunities are more desirable than properties that do not offer the same. This provides tenants with easy access to basic amenities and aspects that improve quality of life. This is especially true for younger generations, with 55% of people between 18 and 25 saying they would pay more for a rental property that is in close proximity to work or university.
Public Transport
Tenants value strong public transport options in conjunction with a good location. With access to transport links such as train, bus, underground, and/or tram system, tenants can easily manoeuvre around their city of residence.
52% of tenants live within five minutes of their nearest public transport, and this expands to 73% of tenants who live within ten minutes. Well-connected commuter towns outside London, for example, remain highly desirable.
Quality of The Property
Ensuring that the property can support a high standard of living is important to tenants. Tenants want their rental property to be in a good state of repair and have a functioning living space.
Additionally, properties that include integrated modern appliances are also popular. Having an oven, fridge, washing machine, and a microwave make a property more attractive to tenants as they do not have to buy these items themselves, which can be expensive.
Shared amenities like on-site gyms, communal lounges, and concierge services also enhance appeal, adding convenience and a sense of community that’s often missing in most rental properties.
Design of The Property
The layout of the property plays a big role in tenant satisfaction. Tenants value having space, particularly those on higher incomes who are prepared to pay additional rent for a bigger space. Some aspects that are important to tenants are:
- Open plan living areas
- High-quality furniture
- Balconies
- En-suite bathrooms or bathrooms that have both bath and shower
- Large windows
These elements elevate the living experience and today’s renters value them highly.
Energy Efficiency
A property’s energy rating has a significant impact on a tenant. A property with a high EPC (Energy Performance Certificate) rating lowers energy bills and reduces environmental impact.
While the legal minimum EPC rating is currently E, many tenants now look for homes rated C or higher. With government regulations pushing toward making C the new standard by 2030, high energy efficient properties are increasingly becoming more vital and desirable.
Other Considerations
- Pets: Having a pet friendly space is a strong drawer of tenants. In 2024, 51% of the population were recorded as owning a pet, suggesting that pet-friendly buy-to-lets are in high demand.
- Storage: A rental property that can provide good storage space is also valued by tenants. 28% of tenants value having space as important. This saves tenants having to store their possessions in storage units, which can be costly.
- Office Space: Since the Covid pandemic, remote and hybrid working has become increasingly popular. More people work from home than ever, and often prefer a dedicated space in their rental property to work from.
The Impact of The Renters’ Rights Bill on Tenants
The Renters Rights Bill is set to be introduced at during 2025, and will fundamentally change the dynamic between tenants and landlords. This will have an effect on what tenants will want from their rental properties.
- Abolition of Fixed-Term Tenancies: One of the biggest changes is the abolition of fixed-term tenancies, which will automatically make all tenancies periodic (monthly-rolling). This means that tenants can provide only a month’s notice before vacating the property. This gives tenants more agency when it comes to exiting their rental agreement, and places more emphasis on the landlord to ensure that the property is of a high standard to maintain occupancy rates.
- Mandatory Landlord Registration: Tenants will favour properties that have a landlord registered on the Landlord database. This provides them with a clear history of the landlord and the property, which will create demand for properties that are compliant and well-maintained.
- Right to Request Pets: Tenants will also have the right to request to keep a pet and landlords will need to consider this request reasonably. For tenants with pets, they will have greater access to a wider range of properties on the rental market.
- Decent Homes Standard: Rental homes will be legally required to meet a new standard of quality, making maintenance and upkeep of the property more important than ever.
To learn more about the Renters’ Rights Bill, click here to read our blog.
Why it is Important to Know What Tenants Want in Their Rental Property
Knowing what tenants want allows investors to make smarter property choices that deliver long-term returns. Properties in prime locations, close to transport, and equipped with modern amenities will always perform better in the rental market. By offering energy efficiency, high-quality finishes, and tenant-friendly features, landlords can reduce void periods, increase tenant satisfaction, and maximise investment value.
At Advantage Investment, we specialise in sourcing only the highest quality properties available in the UK. Whether you are a first-time investor or you are looking to expand your portfolio, contact us today and we will set up a free consultation with one of our expert property investment agents.
