BRICKS TO BELONGING
The psychology behind home and ownership
November 2024
In association with
FOREWORD
As Brits we dream of buying castles in the sky - with an insatiable national appetite to own our own home. Just last year, our Landlord Leaders research found that 74% still consider buying property as a life goal. While we may all believe we know why people want to buy, this research sets out to test our assumptions.
Working with consumer psychologists, IB, we wanted to find out what influences people’s thinking when they talk about wanting to buy a home and to understand what drives their decision-making rationally and emotionally.
Why? Because as well as lending to individuals who buy their own properties, OSB Group, which convened the Landlord Leaders Community, is one of the largest specialist mortgage lenders to landlords. Part of our role as a responsible lender is to help us collectively think about how we support a thriving private rented sectorparticularly in ever-changing markets.
Through previous research, it’s clear that there are questions to be answered that will make a big difference to landlords - how should landlords accommodate for and support tenants if they know that one day they will leave them? Are there ways they can adapt their business models to facilitate lettings that are more predictable and longer-term? And what are forward-thinking landlords already doing that supports our ambitions for a sector that works positively for all?
Jon Hall Group Managing Director, Mortgages & Savings, OSB Group
EXECUTIVE SUMMARY
This playbook builds on previous Landlord Leaders research which identified the increasing professionalisation of the landlord sector and the changing shape of tenants and their needs. With this body of thought leadership established, our next focus area was a deeper dive to understand how people think and operate when they dream of home.
In the UK today 50% of adults own their own property (or are on their way to through a mortgage) and 36% are renting - proportionally speaking home ownership is still the reality for most. For those who rent, they split into households in the private rented sector (19%) and households in the social rented sector (16%). While some people may choose, or be unable, to buy a property in their lifetime, what drives the desire of those who do?*
While the research explored many avenues, ultimately, it identified three key psychological drivers beyond the more obvious demographic ones of wealth, life stage etc.
They are:
¥ The landlord/tenant relationship
¥ The value of ownership and the need for control
¥ The ability to express self-identify through a property.
Put simply, while they are factors that are very personal to each individual, they are factors that are also within the control of landlords in many instances.
* English Housing Survey
This playbook is for those who want to play their role in creating a sustainable and thriving private sector. The private rented sector will benefit from ‘good landlords’ with great tenants who are happy and motivated to stay living in their properties, treating both bricks and mortar and the relationship with respect.
Alongside psychological factors, there are hidden influences and cognitive factors impacting consumer decisions. One of these that was identified during the qualitative part of the research was that expectations from society and parents set the norm of ownership, and this can be a driving factor behind buying. The research also showed that position in life impacts the desire to own a home as well as the ability to move between rented homes.
Neil Richardson Chief Sustainability Officer, OSB Group
PREDICTORS OF WANTING TO OWN YOUR OWN HOME.
The research showed that a renter’s perception of their landlord was the fourth biggest predictor of whether they would move, followed by how much they valued the concept of legal ownership and how much they self-identified with property.
The big question our psychologists were tasked with was to identify the predictors that made it more likely that someone would want to own their own home.
Based on both in-depth interviews and predictive modelling, the research showed that while the top three predictors were perhaps unsurprising - with younger, more highly educated and higher income individuals being the most likely to want to buy - following these demographic drivers were psychological ones.
OF OWN HOME.
Predictors of wanting to own a home
73% predictive power
Younger/middle ages adults more likely to want to purchase than older
People with higher levels of formal education
Most Predictive
High income correlates with intent to move, likely due to financial capability
Negative landlord perceptions increase intent to purchase; positive views encourage staying
Positive views on the value of legal ownership are found in these who want to move or purchase short term
Self-identity with property strongly drives intent to purchase
Having children is linked to a desire to purchase, likely due to seeking stability
Overall landlord behaviour impacts tenant decisions more than specific actions
In the following pages, we examine these findings and what they mean for landlords who want to attract and retain good tenants.
RELATIONSHIP, RELATIONSHIP, RELATIONSHIP.
The relationship between tenant and landlord is the biggest psychological factor in driving people to move.
To move to buy
The research showed us what we all expected to see, that life stage and wealth were the top two indicators as to whether someone would look to buy a property. But the fourth predictor was a psychological one - the relationship between tenant and landlord. Put simply, when a tenant perceives they have a negative relationship with their landlord it motivates them to want to buy.
To move rental accommodation
This is also true for those who are not yet ready to buy. Negative interactions with landlords, such as poor communication, unresponsiveness or perceived unfair treatment, drives renters to seek new accommodation.
Psychology
The brain gives an outweighed preference to negative thoughts and sentiments, which clouds a relationship. This means that it doesn’t take much to tip a landlord relationship into something that a tenant sees as negative. This is particularly the case in a media environment where landlords are largely portrayed negatively.
When tenants experience negative interactions, whether a once-off or a more frequent occurrence, it can trigger psychological reactance, meaning renters perceive their freedom around the home as being restricted. In turn, this leads to feelings of frustration and a desire to push back against the landlord’s authority and control. Seeking psychological harmony and safety therefore becomes the goal of tenants, and this is what motivates the ‘must move’ decisions.
Research Results
Our 2023 research ‘A Future Tenant Standard’ showed that while professional landlords are acting to improve tenant relationships, there are still some gaps to be identified:
Putting landlords in control
The research found that when tenants think about the landlord relationship it makes no difference whether that relationship is conducted through a lettings agent or with a landlord directly. So a negative word or action feels the same no matter who the messenger is.
As a landlord if you are dealing with your tenant yourself you likely know the triggers and actions that may drive negative feelings and are in control of deciding how things operate. The question this research poses is: how do you manage an intermediated relationship to ensure that your letting agent acts in your best interests?
Of tenants have experienced rule breaches
64% 20% 37% 13%
Of tenants say their landlord has cut corners on repairs
Of tenants say the poor quality of the property has impacted their health
Of tenants say there have been rules broken on the safety of their property
CASE STUDIES.
Rachel Lummis, Business Owner (Xpress Mortgages) and Landlord
How do you build relationships with your tenants?
We use a local letting agent to find the tenant, they carry out the references, arrange the inventory and set up the tenancy agreement. Once they have handed the tenants the keys, we then manage the property from there and so the relationship starts from when the tenant moves into the property. We leave a gift of flowers or a plant and a perfumed candle and card wishing them happiness in their new home. We also leave our contact details with them inviting them to contact us with any requirements throughout their tenancy. This starts the relationship in a positive manner.
How would you describe your relationship with your current tenants?
We have a good relationship with all tenants. We don’t contact them unnecessarily, instead allowing them “quiet enjoyment,” as is their right. They know they can contact us should there be any issues concerning the property or breakdown of appliances, for instance, and that we will respond immediately to resolve any issues promptly, which is usually same day but is dependent on whether a trades person was needed and their availability. If it’s a new appliance that is required, we use AO and their fit and remove service, liaising with the tenant to ensure the best time for them.
How do you engage with your tenants e.g. how often, in what form etc?
We usually hear from our tenants via email, a text message or call, we only engage with them should they contact us. I would say on average it’s one call a year, usually to do with the heating, water or maybe the breakdown of an appliance. Otherwise, we allow them to enjoy the property without interruption.
What are the small actions you take to ensure the relationship with tenants remains positive?
By responding to their needs promptly and addressing any issue they may have straight away.
Why do you think it is successful?
Tenants want to know that they can call on the landlord at any given time and be dealt with fairly and promptly should there be any problems with the property, otherwise, in our case, they don’t want to hear from their landlord and be interrupted during their tenancy. For me it’s all about being there and ready to help as needed.
What tips or recommendations would you give to other landlords when it comes to building positive relationships with their tenants?
To provide the landlord’s full contact details to tenants at the start of their tenancy and respond immediately when they make contact and require assistance. To carry out any necessary repairs or replace white goods that can’t be fixed as soon as is humanly possible, otherwise leave them to enjoy their home as this is their right.
Richard Jackson, Business Owner (Alphaletz) and Landlord
How do you build relationships with your tenants?
For me, relationships start with the viewings, then move to what I call on-boarding as they move through the move in process. For example, after passing a credit check and taking a holding deposit, I like to meet the tenant face to face for the check in and show them around the property to make sure they understand where everything is and how everything works, including gas meter readings etc. It helps settle them in and I then give them what I call a ‘Tenant Welcome Pack’ which includes details of utility providers, local services, a number to call for emergencies and full contact details. I carry out 6 monthly maintenance/inspection visits to ensure that the tenant is happy and also to make sure any items get fixed so they don’t become major issues later.
How would you describe your relationship with your current tenants?
I’d describe my relationship with tenants as very good. I value the relationship I have with my tenants and they all have access to my mobile number and email address, and they know they can contact me whenever they need to – that way we can respond promptly to any queries.
How do you engage with your tenants, for example how often and in what form etc?
I like tenants to contact me however they’re most comfortable. That mostly tends to be via email and text or WhatsApp. That way they get a fast response, but if there is anything specific they’d like to discuss in more detail then we’ll speak on the phone.
What are the small actions you take to ensure your relationship with tenants remains positive?
I think it’s the small actions that actually mean the most to my tenants, for example regular communication and quick response times are really appreciated and I think getting the simple things right is often what means the most.
Why do you think it is successful?
Put simply, tenants stay a long time in my rentals because the properties are in good condition, they are happy with the service, and we charge a fair rent.
What tips or recommendations would you give to other landlords when it comes to building positive relationships with their tenants?
It’s not always easy but try not to get emotionally involved. You are running a business and sometimes things go wrong as we’re all human. Try not to fall out over small things as they could become major issues and cause longer term problems.
ARE YOU SATISFIED?
People who place a high value on ownership are more likely to want to buy a home to support their need for long-term stability and emotional and financial security.
Psychology
From a psychological perspective, ownership satisfies a need for control over the living environment and reduces the uncertainty associated with renting.
Ownership aligns with the innate drive for long-term stability and the ability to accumulate wealth – key themes that arose during in depth interviews.
Social role theory plays a part in the desire to buy. For instance, there are societal expectations and personal responsibilities that come with having children, that emphasise the importance of providing stability and long-term security, which can only be found in owning a home
[House ownership makes you feel] secure and more in control of your own destiny. A feeling of having something to pass on to your children. It’s a legacy... We can make our children’s lives more secure after our time.”
Anonymous male Homeowner 70+
Home satisfaction needs are influenced by:
¥ Amenities and facilities available in the neighbourhood
¥ Aesthetics and appearances of the property
¥ Cost of housing relative to quality
¥ Location of the home
¥ Quality and characteristics of the neighbourhood
¥ Size and space of the home meeting people’s needs
¥ Feeling of safety due to low crime rates.
THE BALANCE OF CONTROL.
Renters
and homeowners
report equal ‘home satisfaction’, meaning the property itself and its location have no bearing on the desire to buy a home or move.
For landlords looking to attract and retain long-term tenants, the psychological need for control is less about the property or location itself and more about how they can create opportunities for a tenant to feel in control.
This includes:
¥ Providing tenants with choices about any changes to their lived environment - for example if renovations are required ask them for their input into the decisionmaking, even if superficial. If they see their suggestions implemented they will feel a greater sense of ownership and commitment to the property;
¥ Certainty over the longer-termfor example longer lease durations and considered break clauses;
¥ Financial security - which coincides with the new government guidance on rent price increases.
Alongside this, as seen with the previous insight, communication is key to ensuring the tenant understands what is happening with the property to build and maintain trust.
HOUSING AS SELF-EXPRESSION.
When people self-identify with a property, they are more likely to want to buy their own home.
Psychology
Individuals often see property as an extension or expression of their own identity, and when this self-identity is challenged, it can drive people to look for new housing options - whether that be ownership or new accommodation. This phenomenon can be explained through several psychological principles:
¥ Self-expression – property acts as an artist’s canvas.
¥ Sense of belonging - owning a home enhances a sense of belonging and rootedness, as it represents a stable, personalised space where individuals can cultivate their identity and community ties.
¥ Symbol of achievement – this was seen less so in the research but is a common theme in the external literature.
Putting landlords in control
The research found that personalising space - through decoration or minor changeswithout fear of reprisal, is a relatively easy and inexpensive way for landlords to satisfy tenants’ need for control and ownership and to increase their satisfaction.
Providing more freedom to tenants to decorate their property, leading to a greater sense of autonomy, self-expression and therefore attachment to the home.
SELF-EXPRESSION.
Claudia Kennedy,
Long term tenant, Birmingham
What is your relationship with your landlord like?
The relationship I have with my landlord is excellent. We’re also neighbours and actually exchange Christmas and birthday cards. We’ve also been known to have the odd coffee in each other’s homes! I know some tenants would be tentative about living next door to their landlord, but based on my experience it’s been hugely beneficial for both parties.
What modifications if any have you chosen to make to your home?
I’ve fortunately had a lot of opportunities to modify the property with my landlord’s permission. As well as painting the lounge, kitchen, and garden fences, I’ve been allowed to use nails sparingly to mount artwork and make the place feel like home. I’ve also been creative in applying decorative changes that involve no physical alterations to the house, for example using peel and stick tiles and worktops to update the kitchen aesthetic, which can be easily removed if I decide to leave. Improvements have also been made to the property by the landlord based on feedback I’ve given. For example, repaving the driveway and adding more private fencing.
LANDLORD LEADERS COMMUNITY CASE STUDY.
How do you get in touch with your landlord and how often do they engage with you?
My landlord is always reachable on WhatsApp but more often than not I’ll simply knock on their door! We talk quite often given that we live in close proximity and tend to bump into each other. When it comes to raising issues or concerns about the property, I tend to use these channels as they prefer to pop over and address things quickly. It’s also effective with the landlord’s partner being a tradesman, as in most cases problems are fixed in no time at all.
Does your landlord do anything to go above and beyond?
Early on in my tenancy and prior to updated regulations regarding pet requests, my landlord allowed me to have a dog –something that I’d been hoping to do for some time but had never found a suitable tenancy. I’ve always been grateful that I was able to request this informally and there was no red tape involved. They could have refused but I believe our good relationship and my respect for the care and maintenance of their property certainly helped. It also meant that I could continue the tenancy longer-term.
Has your relationship with your landlord made you think differently about your long term living plans?
My long-term plan has always been to save and purchase my first property, something I confided in my landlord quite early on. Of course, when you rent alone that takes time. Before this tenancy I felt a lot of pressure to purchase as soon as possible, but finding a place where I felt contented took away that sense of urgency.
CASE STUDY.
Suzanne Smith, Blogger (The Independent Landlord) and Landlord
How do you build relationships with your tenants?
Instead of using a letting agent to manage my properties, I do it myself. This means I am the point of contact for anything connected with the property, and not an agent. I prefer this as it means I have direct contact with the tenant and make decisions about how to resolve issues myself. As I also find tenants myself, I find it helps us both establish an early rapport. Of course, that’s achievable as long as you have the time so I’ve kept my portfolio at the level that I can be hands on as needed. I have a vested interest in ensuring the property is up to scratch so if something keeps going wrong, I’ll want to understand the root cause rather than fix it every 3 months knowing it’s probably going to go wrong again. This is something my tenants have told me they really appreciate.
How would you describe your relationship with your current tenants?
It’s very good but I do put in the effort to build on my relationships and ensure messages are answered promptly. For example, I’ll create a WhatsApp group so that any issues are highlighted quickly and acted upon, and I’ll arrange a maintenance visit with the tenants every 6 months to keep things ticking over.
How do you engage with your tenants e.g. how often, in what form etc?
I like to meet prospective tenants whilst they are viewing as it helps us both establish a relationship early on. I check them in myself and take them through what they need to know about the property. I also provide them with a link to a password protected online house manual with information to help them settle in. I arrange my first maintenance visit two weeks later just in case they have noticed anything that needs repairing. This also shows them I’m serious about looking after the property. After that I arrange follow-up maintenance visit every six months, to check in on them, make sure they are happy and to let them know I’m available to help if needed. I prefer the term “maintenance visit” rather than “inspection” as it’s more collaborative.
What are the small actions you take to ensure the relationship with tenants remains positive?
I make it very clear from the start that I’m looking for long-term tenants who will put down roots in the community. I also set my expectations that they pay their rent on time, will look after the property and that they will be good neighbours. These three things are absolutely essential. I’m also very upfront with the fact that I’m here for the long term and not intending to sell in the future as I want them to feel comfortable and settled without having to worry about the upheaval of moving again. My properties are more suitable for families, so I understand that my tenants want to be able to establish roots and not disrupt their family life unless absolutely necessary.
Why do you think it is successful?
I can only gauge success from the fact that I have never had any rent arrears, and tenants stay a long time. I have excellent relationships with them all – friendly yet professional. As long as they can adhere to the three ground rules and their own requirements are met, it’s rare that there are any issues.
What tips or recommendations would you give to other landlords when it comes to building positive relationships with their tenants?
Just as there is a “psychological contract” in the workplace between an employer and an employee, a psychological contract arises between a landlord and a tenant. This goes beyond the tenancy agreement and is about how the tenant feels about their landlord. It can be positive, or negative. It starts from the very first moment that we meet the tenant when we’re choosing them through agents or whether we’re doing it ourselves. It continues when they move in and throughout the rest of the tenancy, until they eventually leave. I believe that having a positive psychological contract is key to having happy tenants.
What is your approach to allowing the tenant to personalise the property?
There’s been numerous occasions where a tenant has wanted to paint a room, or a room has needed attention, and we have agreed on a colour together. Other examples are if taps need changing, I’d ask the tenant for their preferred choice or if they wanted to do something different with the garden. I’m always open to requests and I haven’t refused anything reasonable. Ultimately, it’s got to work for the property and the tenants, and they appreciate me taking the time to ask their opinion on things. It’s important that my tenants feel settled enough to put roots down in the community and that they feel that the property is like “home” to them.
Research Methodology
The research, conducted by IB (a psychological and behavioural science company) in July 2024, followed a structured, four-phase approach: Discovery, In-depth Interviews, Predictive Modelling, and Recommendations. This mixedmethod design provided a comprehensive understanding of consumer perspectives and behaviour.
Phase 1: Discovery
The Discovery phase involved a preliminary analysis of existing data and industry trends to inform the study’s focus areas. Insights gathered during this phase guided the specifics of the subsequent qualitative and quantitative research stages.
Phase 2: Qualitative MethodologyIn-depth Interviews
The qualitative phase included six one-hour, virtual, in-depth interviews, featuring participants at various stages of homeownership:
¥ 2 renters
¥ 2 first-time homebuyers
¥ 2 homeowners in their second owned home
A phenomenological analysis approach was employed to explore participants’ lived experiences, examining the personal meanings and motivations influencing their housing choices. This method allowed for a deep understanding of individual perspectives and contextualised the key factors in the decision-making process.
Phase 3: Quantitative MethodologyPredictive Modelling
During the quantitative phase, IB conducted a survey (2246 adults, equal split by gender, made up of renters, homeowners, or those living with parents/in student accommodation) that included psychological and demographic variables, informed by insights gathered from the interviews. Predictive modelling was then applied to the survey data to forecast consumer behaviour and emerging trends related to homeownership. The resulting model identified the factors most likely to drive future housing preferences.
Phase 4: Recommendations
Based on the insights from the qualitative interviews and predictive modelling, the final phase involved developing targeted recommendations. These recommendations aimed to support strategic decision-making and to further the understanding of key motivations and barriers for different consumer segments.
About OSB Group and Landlord Leaders Community
OSB Group is a leading specialist mortgage lender, primarily focused on carefully selected sub-segments of the UK mortgage market. Its continued success is driven by strong relationships with stakeholders.
The Landlord Leaders community is OSB Group’s membership group of individuals focused on creating a fairer and more sustainable Private Rented Sector.
The Community defined its mission statement in 2023 and meets regularly to contribute to the following four pillars: communication, education and training, collaboration and positive industry perception.
In association with