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Housing Research 214 - June 1997
The market for a new private rented sector
Qualitative research through focus groups, by Caroline Oakes
and Eleanor McKee for the Joseph Rowntree Foundation, studied consumer views of market
renting in Leeds. Extended group discussions with 'middle-income', working single men and
women, and young childless couples, discovered:
- Attitudes to renting were changing: whilst purchase was still seen as the ultimate goal
by most, renting was found to be growing in popularity, not least because it offers
greater flexibility/freedom and allows spending on other priorities.
- The highest priority for renters was location: whilst people might be prepared to
overlook certain aspects of the dwelling itself, they would not be prepared to move into
an area that lacks appeal for them.
- There was a clear division between the 'urbanised' who appreciated the 'buzz' and social
anonymity of city life and the 'country life'/'suburbanised' who wanted a quieter pace,
more outdoor pursuits and often had family ties outside the city centre.
- The car remained important (even though mileage would be much reduced for those who
would cease to commute). Secure parking was regarded as essential.
- The interior was regarded as more important than the external appearance, but there was
a clear preference for renovated/old buildings.
- Preference was for part-furnished accommodation, providing only curtains, carpets,
fitted kitchens and wardrobes.
- No one wanted a designated communal area which was there solely to encourage neighbourly
contact.
- Participants expected to pay rents from £80 to £110 per week for one/two bedrooms.
Feelings about renting
Home purchase was still seen as the ultimate goal by most of those taking part in the
focus groups. But renting was growing in popularity, not least because it was seen to
offer greater flexibility/freedom in the ability to move home relatively quickly and to
spend time and money on other interests.
Participants also expressed some negative views of renting: they talked about 'dead
money' paid in rent, about less control and fewer rights, about the lack of incentive to
invest time or money in the property. The general standard of available rented
accommodation was heavily criticised.
But the phase before committing to purchase was felt to be longer now; people were
aware of others' unsatisfactory experiences of home purchase and did not feel there was an
urgency to 'get a foot on the ladder'. Buying was no longer thought an investment
certainty with a guaranteed profit.
'I've got friends who bought houses and lost loads of money.'
More positively, changes in the job market had increased the appeal of renting; people
felt there were few 'jobs for life' and relocation was often necessary for employment
reasons. Renting was seen as bringing a limited commitment, with no substantial deposit or
liabilities for repairs or maintenance; it allows freedom to focus on other activities
like work and leisure; and it allows investment in other priorities like one's own
business, or greater leisure spending on holidays, etc. This tenure was also seen as ideal
for sharing where the partnership is not necessarily permanent.
'You're carefree when you're renting - you're not tied down.'
Attitudes to location
The highest priority for renters was the location of the property. Potential
residents would not be prepared to move into an area that they perceived to be unsafe or
inconvenient and which lacked appeal for them. Of greatest importance was the reputation
of an area. A 'dodgy' area - which was felt to be one with high rates of burglary, car
theft or drug abuse - would be avoided.
Proximity to basic amenities (newsagent/off-licence/corner shop) and leisure pursuits
(pubs, restaurants, etc) was important, as was proximity to the workplace and to both
public transport (in this case the railway station) and roads out of town (again in this
case, the ring road).
'In some suburban areas it could take you ten years to get accepted. So the city
centre can be more welcoming if you're from the outside.'
'I would be happy to be close to everything. I just need somewhere to crawl home.'
Importance was also attached to the environment and the ambience, including proximity
to open spaces and a sense of mixed community. For some, an 'escape from work' was vital.
'I like to get away. I feel claustrophobic in the city - it's open spaces where I am
walking the dog.'
People and location
There was a clear division between those with a propensity to enjoy the 'buzz' and
social anonymity of city life ('the urbanised') and those for whom the suburbs, and rural
areas beyond, offered more - a quieter pace and more outdoor pursuits (the 'country
life'/the 'suburbanised'). The former were not attached to the area where they were
brought up and appeared more adventurous. The latter often had family ties outside the
city and were more 'settled'.
The advantages to living in the city centre were seen as less time wasted in
travelling, the ability to get around easily without driving, freedom to lead a more
cosmopolitan social life, and shopping and leisure opportunities. But there were fears
about crime, about the lack of open space and the dirtiness of the city.
'I waste about two hours travelling a day at least. I work here and go out here. So
I often go home and then have to come back in.'
'England is one of the few countries in the world where living in the city centre
doesn't happen. I think it would be great ... dead cosmopolitan.'
Cars and parking
Despite living closer to amenities (and probably to the workplace), potential inner
city renters regarded car-ownership as important. No doubt mileage would be much reduced
for those who ceased to commute and this has distinct advantages in terms of pollution and
congestion. But secure parking was regarded as essential.
Car-related crime was an anxiety and all groups wanted a parking facility which had an
exclusive entry-system for residents and, preferably, designated spaces - at least one per
flat - with some provision for visitors. Whilst people felt they would use their car less
regularly, they felt they would still need to use the car to 'escape' the city or for bulk
shopping.
The idea of a separate car-parking charge was not popular; but if a charge were to be
imposed, £500 per year was regarded as reasonable. It was felt better to present the
rent/parking charges on the basis of offering a discount to those who did not have
a car, rather than charging extra for the car space.
Security
Security was important, particularly for women. Required security measures included an
entry phone for individual flats, strong and secure doors and locks, and a light sensor
outside the entrance; some also wanted security cameras and burglar alarms for each flat.
Internal security was a priority and the presence of a caretaker would be greatly
welcomed.
'I'm sensitive, having been broken into four times.'
Furnished versus unfurnished
The general preference was for neither fully furnished nor unfurnished accommodation;
part-furnished was preferred, including only curtains, carpets, fitted wardrobes and
kitchens.
People wanted the opportunity to install or accumulate their own furniture. Experience
of renting furnished accommodation was not good.
'I'm 22 and you want to feel you are collecting stuff and able to impose your own
style.'
'I slept on the floor for six weeks and I didn't mind because there were carpets.'
Heating and insulation
Participants expected flats to have an economical heating system and there was
consistent, spontaneous criticism of electric storage heating as inflexible and
ineffective:
'You can't set or control the heat.'
Insulation was not an issue which people raised spontaneously and environmental
concerns were not mentioned by the renters/potential renters.
For some, insulation was associated with noise; where sound insulation was drawn to
people's attention, they stressed its importance:
'You don't know until you move in how noisy your neighbours are. If there was good
insulation that would really influence me.'
Communal considerations
No one wanted a designated communal area which was there solely to encourage neighbours
to meet together. Residents' committees/rooms were felt to be reminiscent of institutional
homes or student residences. Some had no desire to mix; others felt they would meet their
neighbours anyway.
'I would like to feel I got on with my
neighbours, but you have to be careful. I
don't want to be friends necessarily.'
However, an outdoor communal area was a very popular idea, eg a courtyard or roof
garden.
People wanted their own washing machine but drying was perceived as a problem: a
hanging and tumble drying facility was of interest.
There was also interest in a fitness room and even a pool; but people recognised that
the cost of these might be prohibitive.
Rents
Participants expected to pay rent levels from £80 to £110 per week (including any
car-parking charges) for flats with one or two bedrooms. The preferred price range was
£80 to £90 a week for one bedroom. The higher price band was more than most were
currently paying - but those interested would expect to pay a premium to live in the city
centre.
'I would be prepared to reduce my outgoings on clothes and beer so I could afford
what I want.'
For two bedrooms, there was greater flexibility on rents because the costs might well
be shared.
The premises
The characteristics of the interior were regarded as more important than the external
appearance. But there was a clear preference for a renovated/old building rather than
newly built apartments. Conversions of traditional buildings, with perceived architectural
merit, gained most approval. Large impersonal blocks of flats were universally disliked:
'It's good to use original buildings, warehouses, old mills.'
If a modern development was built, there was frequent mention of the need for space and
light. The outside should avoid the impression of a 'boxy', uniform design. Balconies were
felt to be a desirable feature.
Pokey, dark, small flats were disliked. First importance was given to the living-room
and there was a consensus in favour of a hall.
'I don't care what the flat is like, as long as it has got a large main room.'
All would like a shower but not at the expense of a proper bath.
Whilst some were opposed to open plan, for others it could offer the opportunity for
space and light. Most had a preference for eating in the living room rather than the
kitchen, perhaps with an L-shaped room; a spacious kitchen was not a priority (although a
fitted kitchen was). Some needed a second bedroom for family/friends, but most younger
participants thought that two bedrooms would be too expensive unless the accommodation was
shared.
Conclusions
This qualitative research showed, unsurprisingly, that tastes and requirements varied
in the choice of a home. But there were areas of consensus:
- attitudes toward buying a property had become more cautious;
- but renting was still seen as a stepping stone to purchase;
- location was the most important consideration when choosing somewhere to live;
- secure car-parking was a high priority;
- renovated older buildings were appreciated, in comparison with new developments;
- but the interior was seen as more important than the external appearance, with an
emphasis on space and light.
About the study
This market research was commissioned by the Joseph Rowntree Foundation as part of its
City-centre Apartments for Single People at Affordable Rents (CASPAR) project. Five focus
groups were convened of people with earnings in excess of £14,000 (£22,000 for couples)
who were renting or wanting to rent in and around Leeds but not in the city centre. These
covered single women and single men separately, in four age-related groups, and childless
couples in their twenties or thirties.
Further information
A report, City-centre Apartments for Single People at Affordable Rents: The
requirements and preferences of potential occupiers, is published by York Publishing
Services (ISBN 1 899987 50 9, price £11.95 plus £1.50 p&p).
This title is now out of print.
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