Friday, 24 May 2013

Private Rented Sector Considers Longer Term Tenancies

The Residential Landlords Association (RLA) has launched a survey of 100,000 landlords to gauge opinion on longer term tenancies in the private rented sector (PRS).
The housing charity Shelter is arguing for a new five-year fixed-term to be introduced for all tenancies in the PRS, with rent increases linked to inflation and tenants able to leave the contract at any point with two months’ notice for no apparent reason.
The RLA has complained that this is a privilege that would not be extended to the landlord and would adversely affect the tenant/landlord relationship.
Whilst the RLA says that longer tenancies should be used "where needed", it does not believe that such a model should be the default position. 
Richard Jones, the RLA’s policy director, said: “Whilst Shelter continues to suggest that landlords are actively looking for opportunities to throw their tenants out altogether, the reality is that just 9% of tenancies are ended by a landlord, showing that the majority much prefer to keep tenants on than face an empty property.
“Moreover, with the average length of private tenancies now reaching 20 months, it is clear that the current tenancy model already provides for longer term tenancies when they are needed for families.
“Whilst the RLA is now consulting on proposals that would achieve the right balance of rights between the landlord and tenant while maintaining the confidence of mortgage lenders, Shelter’s proposals would not work, not least given that many tenants, especially younger people, such as students or those who are eventually looking to buy a home of their own, seek a short term tenancy.”
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