In plans published today (2 July 2018), Secretary of
State for Communities Rt Hon MP proposes the
introduction of a minimum 3-year tenancy term, with a
6-month break clause, to help renters put down roots,
and give landlords longer term financial security.
According to government data, people stay in their
rented homes for an average of nearly 4 years. But
despite this, 81% of rental contracts are assured
shorthold tenancies with a minimum fixed term of just 6
or 12 months.
This can lead to tenants feeling insecure, unable to
challenge poor property standards for fear of tenancies
being terminated, and unable to plan for their future
or contribute to their wider community.
Although tenants and landlords can already agree longer
terms between themselves, the majority choose not to do
so.
Under the proposed longer term agreement, tenants would
be able to leave before the end of the minimum term,
but would have greater protection if they wanted to
stay in a property for an extended period of time.
Secretary of State for Communities Rt Hon MP said:
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.
Being able to call your rental property your home is
vital to putting down roots and building stronger
communities.
That’s why I am determined to act, bringing in longer
tenancies which will bring benefits to tenants and
landlords alike.
As part of its continuing commitment to give more
security to renters, an 8-week
consultation on the plan has been published,
specifically looking at overcoming the barriers to
landlords offering longer tenancies.
The 3-year model is one of a range of options and the
consultation seeks views on longer minimum tenancies,
which are used in other countries, as well as ideas on
how to implement the model agreement.
Landlords play a vital role in providing homes to
millions of people in this country and the proposals
ensure that longer tenancies help them avoid costly
periods while they search for new tenants and offers
them flexibility to regain their properties when their
circumstances change.
The government understands that some landlords worry
about the time it can take to gain possession of their
property in the courts. A call for evidence will be
published this autumn to better understand the
experience of users of the courts and tribunal services
in property cases, including considering the case for a
specialist Housing Court.
As part of the consultation,
which runs until 26 August 2018, ministers are seeking
views from landlords, tenants and related organisations
about the most effective ways to tackle obstacles to
introducing longer tenancies.
If government proceeds with mandatory longer tenancies,
primary legislation will be required. Following the
results of the consultation, the government will
consider next steps with legal professionals.
The consultation will consider whether there should be
any exemptions – such as for student accommodation.
