Bank extends tenancy contracts to three years amid pressure from tenant group

Bank extends tenancy contracts to three years amid pressure from tenant group

0:01 AM, 28th May 2024, About 3 weeks ago 13

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A bank has caved in to pressure from a renter group and agreed to extend the maximum length of tenancy contracts in their buy-to-let mortgages from 12 months to three years!

Tenant union group ACORN called on TSB to remove the restriction on tenancy lengths, arguing that the 12-month limit forces tenants into a cycle of uncertainty and instability.

The new rules mean it could be harder for landlords to evict problematic tenants.

Renters need stability

ACORN claim that a 12-month contract leaves tenants more vulnerable to evictions.

Eleesha Taylor-Barrett, a renter and ACORN board member said: “TSB’s policy meant that renters across the country are facing rent hikes, eviction and the stress and cost of trying to find a new home every 12 months, all during the housing crisis.”

“As a renter who’s moved five times in the last five years, I know first-hand the level of uncertainty these insecure tenancies can bring.”

“ACORN will continue to fight for rental reforms that will deliver the changes we desperately need, but we can’t sit around and wait for the government as it drags its feet, renters need stability and security now!”

TSB ending unfair practice

ACORN protested at 30 TSB branches across the country last weekend demanding an end to short-term tenancy contracts.

The high street bank announced a few days later that they would change the rules in their buy-to-let mortgage policy.

Chelsea Phillips, ACORN National Chair, said: “TSB ending their unfair practice against renters shows that when we come together we win. Action was taken by our members – normal people all up and down the country from Portsmouth to Newcastle, ages 1 to 80 to demand insecurity for renters ends.

“It is so inspiring that normal people can take on a bank and win. Things can change and they will if we come together.”

ACORN claimed in a social media post on X, formerly Twitter that they continue to be in open dialogue with TSB on making tenancy contracts open-ended.


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Comments

Cider Drinker

9:39 AM, 28th May 2024, About 3 weeks ago

Sounds like yet another pointless protest designed to garner support for the business (aka ‘charity’).
There’s already a Section 8 Ground that allows a lender to seek possession of a property should the borrower default on the mortgage payments.
If tenants are being asked to leave at the end of their fixed term then either the tenant is not a good tenant or the landlord is selling up. The (extremely valid) reasons why landlords are selling up are well documented.
The Renters (Reform) Bill had proposed to end fix term ASTs and effectively make the tenancies periodic with just 6 months minimum terms (a bit confusing mixing periodic and a minimum term in my opinion).
It is landlords that will decide how long they wish to offer. Not the banks and certainly not the Acorn business. Very few will choose to offer fixed terms of 3 years in my opinion.
I used to offer my tenants fixed term ASTs of up to 3 years. I don’t now. My plan now is to sell unless something changes to make the PRS fairer for landlords. And quickly.
Right now, I think Reform UK are the only Party to offer any hope of improving the housing crisis.

Fed Up Landlord

11:54 AM, 28th May 2024, About 3 weeks ago

Acorn. Another bunch of multi- membership lefty socialist flash rent a mob who intimidate and threaten staff at letting agency and building society branches.

Due to their actions and that of their comrades Gen Rant and Hell-ter Shelter, property supply is down and rents are up. Well done.

They are the same ones waving their Socialist Worker Party placards and wearing their keffiyeh headscarves when they haven't a clue what they are protesting about.

They should all curl up and expire.

Chris Rattew

12:43 PM, 28th May 2024, About 3 weeks ago

This looks like some progress. However, while there is a shortage of properties, tenants are unlikely to have many offers of longer tenancies. Government actions, such as the Rental Reform Bill generally make matters worse. The Government needs to be much more flexible on tenancy terms. We are likely to continue with our current tenancies of up to 18 months ending on 1st September.

Cider Drinker

12:57 PM, 28th May 2024, About 3 weeks ago

Reply to the comment left by Chris Rattew at 28/05/2024 - 12:43
Chris, what do you believe this is progress towards?

Landlords have always cherished long-term tenants. Long-term tenants are good news.

I’m such a landlord. My tenants don’t often wish to move. One that does wish to downsize has said she only wants me to be her landlord.

Sadly, anti-landlord rhetoric has made it that I don’t wish to continue. I can earn a better return by putting my money into a safe savings accounts where there is no stress and tax returns are easier. My properties will all be sold and families will be evicted. All other properties advertised on RightMove are around 40% more expensive. All that they can afford is a less attractive property with no garden, no pets yet even these properties are snapped up within days of being advertised.

Reluctant Landlord

14:41 PM, 28th May 2024, About 3 weeks ago

Reply to the comment left by Chris Rattew at 28/05/2024 - 12:43
progress???

Chris Rattew

14:46 PM, 28th May 2024, About 3 weeks ago

Reply to the comment left by Cider Drinker at 28/05/2024 - 12:57
This is progress in that it removes a restriction imposed on landlords by lenders. It is better to have flexibility. It is possible now to offer longer contracts subject to including a clause to keep the lender's right to early termination. However, lenders are now asking for contracts to be between 6 and 12 months, although they have permitted shorter ones. I am favour of a much freer market.

Cider Drinker

17:02 PM, 28th May 2024, About 3 weeks ago

Some lenders have never had a restriction. Mine asked for a copy of the tenancy agreement and were happy with my 3 years AST.

When inflation was out of control, I wished that I had limited the fixed terms to one or two years. As it was, I let the tenants know that their rents would rise significantly when the fixed term ended and they understood. This year I offered one or two years at a fixed rent for the term (with 2 year being around 4% more than one year). They chose the one year option and I plan to increase the rent by 10% next year which will still be less than the market rate (and less than the LHA for the area).

Flexibility is great but some people need protection from themselves.

Reluctant Landlord

17:03 PM, 28th May 2024, About 3 weeks ago

Reply to the comment left by Cider Drinker at 28/05/2024 - 17:02
all good...unless rent caps come in....

Cider Drinker

22:42 PM, 28th May 2024, About 3 weeks ago

Reply to the comment left by Reluctant Landlord at 28/05/2024 - 17:03
If rent caps come in and if this causes me an issue, I WILL get my tenants out.

I have had only two bad tenants in 20+ years. It didn’t end well for either of them.

Mick Roberts

5:38 AM, 29th May 2024, About 3 weeks ago

Reply to the comment left by Cider Drinker at 28/05/2024 - 12:57
Wow TSB has caved in.
TSB ended their unfair practice against renters. A practise that lends money to house the renters.

Cider says it correctly:
Landlords have always cherished long-term tenants. Long-term tenants are good news

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