Longer term tenancies could be rolled out next year, says Government
The Government has revealed its ‘tenant’s charter’, which is aimed at improving rental standards across the UK and could be launched as early as the New Year.
Communities Secretary Eric Pickles announced the new measures at the recent Conservative Party conference and confirmed that the charter would enable tenants to request longer-term rental contracts from landlords. The contracts could span two to five years, Pickles confirmed, which would give individual renters and families the stability they need.
“Families deserve stability for their children and all tenants deserve a good and transparent service from their landlords and lettings agents,” Mr Pickles said.
Tenants have been calling for longer-term rental contracts rather than the standard six to 12 month contracts issued by the majority of landlords for some time now. Longer-term lets would bring benefits to both the renter and the landlord, industry experts have said, as they provide security to tenants and fewer void periods when the property is empty for landlords.
One of the current barriers to longer rental contracts is the constraints placed upon landlords by buy-to-let lenders, who prefer shorter tenancies as it makes it easier for them to repossess the property should the landlord fail to repay the loan.
The Government has confirmed that it will encourage lenders to alter their terms and conditions so that this will no longer be an issue, with Housing Minister, Mark Prisk, saying: “We’re working with landlords, letting agents and lenders to remove any barriers there may be to this happening, alongside highlighting the new opportunities this creates.”