Mortgage lender OSB Group – whose brands include Precise Mortgages, Kent Reliance for Intermediaries and InterBay Commercial – has unveiled research into the psychology behind private renting.
The study shows that while 74% of tenants aspire to buy their own home, more can be done by the private rental sector to explore and understand why people are tenants – and what they want from renting.
Neil Richardson, chief sustainability officer at OSB Group, says: “Affordability remains a significant challenge for many Brits and as a result more of us are renting for longer. For landlords, this is both an opportunity and a challenge, as they seek to find the best tenants in a shifting market. To create a thriving private rented sector, it’s key that we think and act beyond the headlines to support landlords in providing homes for tenants.”
According to the research, these motivations are underpinned by three core psychological drivers – and OSB brings in external figures to explain the issues.
The first is the strength of the landlord-tenant relationship.
From a psychological perspective this relationship is so important that, when it is negative, it is the primary driver of people deciding to buy. Sean Hooker, Head of Redress and Ombudsman Office at The Property Redress, says: “Landlords must recognise that renting is not just a financial transaction for tenants. The place where you live profoundly impacts your sense of belonging and emotional well-being.”
The second is the ability for tenants to express their personal identity through their living space.
Dr Simon Moore, chief psychologist at IB, comments: “When you own something, like a house, you tend to want to stamp your personality over the place. If you can’t do it in rental property, it has a knock-on impact. Renters feel an inability to feel control because of this and that drives them from the rental market.”
The final key driver is the value of ownership and the need for control.
While the research finds that homeowners and renters experience similar levels of satisfaction with their properties, the need for control is a significant psychological factor in driving them out of the rental sector. Suzanne Smith, from The Independent Landlord and a founding member of the OSB Group Landlord Leaders Community, claims: “Landlords should foster a long-term, collaborative relationship with tenants. Reassuring tenants that they can stay in a property long-term helps build trust and stability.”
