What are Tenants Willing to Pay More For?

In the current UK rental market, tenants are often willing to pay extra for certain features and amenities that enhance their living experience. This shift in priorities is largely due to a combination of factors, including the ongoing housing shortage, rising living costs, and the impact of the pandemic on lifestyle preferences. Below are some of the key features that tenants are willing to pay more for, along with insights into why these amenities are so valued.

Pet-Friendly Homes

One of the most in-demand features is pet-friendly accommodation. According to recent surveys, around 1 in 4 tenants would pay an additional £50 per month for a rental property that allows pets. The scarcity of pet-friendly rentals, combined with the growing number of people owning pets, makes this feature particularly attractive. Tenants with pets often face difficulties finding suitable homes, which means they are willing to stretch their budgets for the opportunity to live with their furry companions. This trend is likely to continue as more people adopt pets and look for long-term rental solutions that cater to their needs.

Outdoor Space

Since the COVID-19 pandemic, the desire for outdoor space has skyrocketed. Many tenants now prioritise having access to a private garden or balcony, especially those who work from home and need a place to unwind during breaks. Around 18% of tenants are prepared to pay extra—on average, £69 per month—for a property with outdoor space. This preference is driven not only by the shift to remote working but also by a broader appreciation for nature and fresh air, which has become more important since lockdowns restricted indoor activities.

Parking Spaces

Parking has become another critical feature, particularly for tenants living in city centres where parking availability can be scarce. Roughly 17% of renters say they would be willing to pay up to £50 more per month for a guaranteed parking spot. This demand is rising as people return to city living post-pandemic and need convenient access to parking, especially in areas where public transportation may not fully meet their needs.

Energy Efficiency

With energy costs soaring, renters are becoming increasingly aware of the financial benefits of energy-efficient homes. A significant 85% of tenants say that energy efficiency is important to them, and many are even willing to pay more for a home that helps lower their energy bills. In fact, over 40% of renters are prepared to pay a premium for properties that have better energy efficiency ratings, such as those with double glazing, energy-efficient boilers, and good insulation. This trend aligns with broader societal concerns about sustainability and the environment, making energy-efficient properties more attractive than ever before.

Furnished Properties

Convenience is another major factor driving rental decisions. Furnished properties are particularly appealing to first-time renters or those moving to a new area without their own furniture. About 15% of tenants would pay an average of £163 more per month for a fully furnished home. The appeal lies in the cost savings and reduced hassle, as tenants can move in without needing to buy or transport furniture. This is especially relevant for younger tenants or professionals who are still settling into their careers and might prefer to avoid large upfront expenses.

Proximity to Public Transport and Amenities

Living close to good public transport links and essential amenities, such as supermarkets, gyms, and parks, is a high priority for many tenants. After the pandemic, 51% of renters said that proximity to transport connections is more important than it was before. People who work in city centres, but prefer living in suburban areas, often opt to pay more for a home that allows them quick and easy commutes. This is particularly true in larger cities like London, Birmingham, and Manchester, where public transport options can significantly reduce travel times and improve the quality of life.

Increased Privacy and Security

In an age where safety is a top concern, many tenants are willing to pay extra for enhanced security features, such as gated access, CCTV, and secure entry systems. For those renting in urban areas, where crime rates might be higher, these features can provide peace of mind. Additionally, privacy features, such as soundproofing between flats or detached properties, are becoming more desirable as tenants seek to create a peaceful living environment, especially with more people working from home.

High-Speed Internet

As remote working and online education continue to be part of daily life, having a reliable and fast internet connection is now considered essential by most tenants. Many are willing to pay a premium for homes that offer fibre optic broadband or other high-speed internet options. This is especially important in rural or suburban areas where internet speeds may not be as fast as in city centres. Properties that offer this feature tend to attract more interest, particularly from professionals who rely on stable internet for their work.

Shared Amenities in Larger Developments

In some larger, modern developments, tenants are also willing to pay more for access to shared amenities such as gyms, swimming pools, co-working spaces, and even cinemas. These facilities not only offer convenience but also enhance the lifestyle experience, making the rental property more attractive to a wide range of tenants, from young professionals to families. Tenants today are looking for a complete living experience, and access to high-quality amenities can be a deciding factor.

Location and Lifestyle

The location of a property remains a crucial factor in rental decisions. Tenants often choose properties that allow them to live close to work, schools, or family, even if it means paying a higher rent. Popular areas in big cities or trendy neighbourhoods can command significantly higher prices, but tenants are willing to pay more for the lifestyle and convenience these locations offer. The proximity to cultural and recreational activities also plays a role, with tenants opting to pay a premium for homes near parks, restaurants, and entertainment venues.

Conclusion

In the competitive UK rental market, tenants are increasingly willing to pay more for features that enhance their quality of life. From pet-friendly homes and outdoor spaces to energy-efficient properties and secure parking, the desire for convenience, comfort, and long-term stability is shaping tenant preferences. For landlords and property investors, understanding these priorities is key to maximising rental income and ensuring properties remain in high demand. As the market continues to evolve, offering these desirable features could be the difference between a property sitting empty and one that is quickly snapped up by eager renters.

In summary, while rents are climbing across the UK, tenants are showing a clear preference for homes that offer more value in terms of lifestyle and practicality. Whether it’s energy efficiency, proximity to public transport, or the inclusion of modern amenities, renters are willing to stretch their budgets to secure the right home.