Should You Renew Your Tenancy or Look for a New Rental? Key Factors to Consider

Deciding whether to renew your tenancy or seek a new rental property is a significant decision for renters. Whether you’ve been living in your current home for a while or are nearing the end of a fixed-term contract, understanding your options and weighing the pros and cons can help you make the best choice for your lifestyle, budget, and future plans.

Here are some key factors to consider when deciding whether to renew your tenancy or look for a new rental property:
 

1. Cost and Affordability

One of the first factors you’ll want to evaluate is the cost of your current rent versus what’s available on the market. Rental prices have been subject to significant fluctuations in recent years, especially in urban areas like London, Manchester, and Edinburgh.

Current Rent: Is your current rent reasonable, or has it increased significantly? If the rent is set to rise, will it remain within your budget?

Market Comparison: Have rental prices in your area gone up or down? You can easily compare rental prices for similar properties in the same area to gauge whether your current rent is still competitive.

Extra Costs: Consider additional expenses such as council tax, utilities, and broadband. Will moving to a new rental affect these costs? Check out our guide to understanding the rental costs beyond rent. You’ll also likely have moving costs too - if you do decide to move then take a look at our guide to moving house.

If your current rental is within your budget and market trends suggest that moving could result in higher rent or other costs, renewing your tenancy might be the better financial option.

2. Location and Convenience

The location of your rental property plays a critical role in your day-to-day life. Whether it’s proximity to work, schools, transport links, or local amenities, consider the convenience your current location offers.

Work and Commuting: If you’ve been working from home recently, a move to a different area might not be as disruptive. However, if you’re returning to the office, is the current location still ideal for commuting?

Public Transport and Amenities: Has your access to shops, healthcare, or other essential services changed? If public transport links or local amenities are lacking, moving might be a better option for long-term convenience.

On the other hand, if your current location is perfect for your lifestyle, renewing your tenancy might be the simplest and most cost-effective choice.
 

3. Condition and Maintenance of the Property

The condition of your current property is another vital factor in the decision-making process. If your landlord is responsive and maintains the property well, this can provide a sense of security.

Repairs and Maintenance: Are there any ongoing maintenance issues that have not been addressed, or is the property generally well-maintained? A landlord who responds promptly to issues can make a big difference.

Space and Layout: Does the property still meet your needs in terms of space, storage, and layout? If your household size or lifestyle has changed, your current rental may no longer be suitable.

If your home is in great condition, and you’ve been happy with the maintenance, renewing your tenancy might be a convenient and comfortable choice.

4. Plans for the Future

Your future plans can have a significant impact on your decision. Are you planning to stay in the area for the long term, or do you see yourself moving for a job, relationship, or other reasons?

Stability: If you’re likely to stay in the same location for a few years, renewing your tenancy may give you a sense of stability and peace of mind.

Flexibility: If your circumstances might change in the near future, a shorter tenancy or the option to move could be more appealing. Consider the flexibility offered by different rental agreements.

Thinking ahead to what your life will look like in the next few years can help guide your decision, whether it’s committing to another year in your current property or finding a new rental that aligns with your goals.
 

5. Landlord Relationships

A positive relationship with your landlord can be a deciding factor in whether you renew your tenancy. Open communication, timely repairs, and fair treatment are important for a stress-free renting experience.

Communication and Support: Does your landlord listen to your concerns and resolve issues promptly? If your landlord is difficult or unresponsive, it could be worth looking for a new rental property.

Rental Terms: Are the rental terms clear and fair? If the landlord is imposing unreasonable conditions or seems inflexible, you may be better off finding a new home.

If you’ve had positive interactions with your landlord, renewing your tenancy might be easier, knowing you have a trusted relationship in place.
 

6. Market Trends and Availability

The state of the rental market in your area will influence your decision. The UK rental market can be competitive, particularly in major cities, so it’s worth considering whether you can find a better deal or a more suitable property elsewhere.

Availability of Rentals: Are there many available rental properties in the area, or is inventory low? If options are limited, you may want to consider renewing your tenancy to avoid the hassle of moving.

Rental Market Trends: Is the market improving or becoming more competitive? If demand for rental properties is high, it could be more difficult to secure a desirable place in your area.

If you’re in a location where rental properties are scarce or prices are rising, renewing might be the more straightforward option.

7. Personal Circumstances

Changes in your personal circumstances, such as family size, relationship status, or health, can significantly affect your rental needs.

Growing Family: If your family has grown or you plan to have children soon, you may need more space. This could mean that your current rental no longer meets your needs, and a move could be necessary.

Health Considerations: If your health or the health of others in your household requires specific living conditions (e.g., ground-floor living, wheelchair access), a new rental property may be required.
 

Key Takeaways For Tenants

Deciding whether to renew your tenancy or search for a new rental property in the UK comes down to evaluating a combination of financial, personal, and logistical factors. Take the time to weigh your options, assess the local market, and think about your future plans. Whether you stay put or explore new possibilities, ensuring that your decision aligns with your needs and circumstances will help you make the best choice.

If you’re unsure, seeking advice from a professional letting agent or using online rental tools can provide additional insights into your options. Whatever you decide, making an informed decision will lead to greater satisfaction with your next home, whether it’s your current property or a new one.

If you do decide to move, check out our guide on how to find a new rental property. And don’t forget to search Marks Out Of Tenancy before signing an agreement - you can check what previous renters thought about the neighbourhood, property, landlord or letting agent.