In a bid to provide more security for tenants, the Government has unveiled its ‘tenant’s charter’, which is aimed at improving rental standards across the country, as well as benefiting landlords by ensuring fewer void periods.
The charter – which could be launched as early as the New Year – was announced by Communities Secretary Eric Pickles at the recent Conservative Party conference. It would allow tenants to request longer-term rental contracts from their landlords, which could be between two and five years in length.
Pickles said that these longer tenancies would entitle renters to the stability and security that they deserved: “Families deserve stability for their children and all tenants deserve a good and transparent service from their landlords and lettings agents.”
Longer-term rental contracts have long been sought after by tenants as the current six to 12 month contracts that are issued by the vast majority of landlords in the UK do not allow some renters to feel secure in their homes. Landlords could also benefit from the longer term lets, industry experts have said, as they would ensure fewer void periods when the property sits empty, meaning less gaps in rental income for landlords.
However, one of the barriers currently hindering longer rental contracts is the restrictions placed upon landlords by buy-to-let lenders, who favour short-term tenancies. Lenders prefer these tenancies as they make it easier for them to step in and repossess the property if the landlord should fail to repay the loan.
This restriction is currently being looked at by the Government, and it has been confirmed that lenders will be encouraged to alter their terms and conditions to ensure that longer-term tenancies can become more common in the future.
Housing Minister, Mark Prisk, said: “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.”