Three-year tenancies are being proposed by the UK government, underlining the continued demand for rental property and the need for greater regulation in the sector.
Summary:
- The UK government is consulting over the minimum tenancy term in the country
- Under new proposals, tenants would be able to access three-year tenancy terms, helping people to “put down roots” without worries over short tenancies
- Not only does it underline the growing reliance on the UK’s rental sector, but also the need for greater reform to provide more professional standards of management
UK tenants could soon be able to live in their rental property with three-year tenancies.
New government proposals aim to give more security to renters, with consultations on minimum tenancy lengths likely to continue until August 2018.
It comes at a time when homeownership rates in the country have fallen to 63% in 2017, compared with 72% 10 years’ previous. Of course, while affordability is preventing many people from making it onto the property ladder, there’s also a rising number of tenants that are turning to the rental sector as their long-term rental solution.
Indeed, research published in June found that 70% of UK tenants have no plans to buy a property in the future.
As a result, the UK government has recognised the importance of improving standards for those living in the country’s rental market. Tax reforms in recent years have been regarded as a means of moving the UK away from its traditional, outdated buy-to-let sector, and to instead focus investment into the purpose-built rental sector.
And these tenancy reforms, the government argues, would help those tenants that want to stay in the same rental property for a longer period of time to feel more settled in their home.
“It is deeply unfair when renters are forced to uproot their lives or find new schools for their children at short notice due to the terms of their rental contract,” argued Communities Secretary James Brokenshire.
“Being able to call your rental property your home is vital to putting down roots and building stronger communities.”
Source: Select Property