Government look to throw landlords under the bus with 3 year tenancies

by Property 118

9:15 AM, 2nd July 2018
About A year ago

Government look to throw landlords under the bus with 3 year tenancies

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Government look to throw landlords under the bus with 3 year tenancies

The government has released to the BBC and other selected journalists that it intends to hold a consultation considering making the shortest term tenancy in England 3 years with a 6 month break clause for tenants.

The consultation is due to start this week and run until 26th August.

Communities Secretary, James Brokenshire, said to the BBC: “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.”

He then told the Mail that under the proposed reforms, tenants would be able to leave before the end of the minimum term, but would have greater protection if they wanted to stay for an extended period.

By the Governments very own figures the average tenancy length is over 4 years so why take away nearly all flexibility? Only normally the worse tenants are served a section 21 by landlords. Do politicians still want the Private sector to house the tenants that the state can’t accommodate?

John Healey, Shadow Housing Secretary said: “Any fresh help for renters is welcome but this latest promise is meaningless if landlords can still force tenants out by hiking up the rent.”

Healey also added that Labour plans for the PRS included controls on rents, an end to no fault evictions (ie. section 21) and even more protection against substandard properties.

As easily predicted Shelter waded in with Polly Neate saying: “This is an important step forward. Losing a tenancy is the main driver of homelessness and also causes huge instability for renting families so everyone who rents will be very pleased to see a move towards longer tenancies, but if the government really wants to stand up and provide stability for renters, they can and should go beyond three years to provide real protection from eviction, and the huge upheaval of having to move home, jobs and schools.

“The government needs to bring forward new legislation quickly with tens of thousands of families already homeless and many more at risk of the same fate, we simply cannot wait.”



Comments

Luke P

10:47 AM, 2nd July 2018
About A year ago

Part student/part not?

Whiteskifreak Surrey

11:01 AM, 2nd July 2018
About A year ago

Reply to the comment left by Luke P at 02/07/2018 - 10:47
Just do not rent to such a group. Tell them the government regulations make such a let unworkable.
The more people will be rejected the quicker these idiots in the government realises that war on LLs is not working. I know, wishful thinking...

AlanR

11:10 AM, 2nd July 2018
About A year ago

I hope that, if this is implemented, they don't also want existing tenancy agreements to be renewed to comply with the 3 year rule. The future of the PRS is starting to look a little bleak. Renting out my two properties is part of my pension set-up, selling up and cautiously investing the proceeds will not give the same returns.

Rod

11:17 AM, 2nd July 2018
About A year ago

None payment of rent = homelessnes and they know it. All, right to those MPs involved and they'll soon get fed up!

Neil Patterson

11:36 AM, 2nd July 2018
About A year ago

There is no way BTL lenders would allow it at the moment.

Tobias Nightingale

11:50 AM, 2nd July 2018
About A year ago

Cant say I like the sound of this. However when people think about labour just remember they are very likely to need to do a coaltion deal with the SNP. And thanks to the english votes for english laws as is the course with opposition the tories will vote down the rent controls as they will have majority in england (let alone the labour mps that are landlords /london ones at that!). So there are limits. Plus this was couched about famalies so I reckon HMO's/Flats will be exempt.

Plus as with the NHS pledge is termed as by 2023 and of may. If I didnt know better this is positioning themselves for another election before 2022. And then they can whiggle out of the things saying that was a different leader etc.

Jim

12:14 PM, 2nd July 2018
About A year ago

I am getting closer and closer to my tipping point where the hassle factor of continuing letting is too great. I will run my partnership for 2 more years (I've completed the first year), incorporate and then most likely sell up while my CGT is nil.

Does anyone have any ideas on what to invest in then?

Richard Adams

12:16 PM, 2nd July 2018
About A year ago

What about this scenario? There is two years to run until expiry of mortgage and if owner cannot re mortgage due to age or not wishing to, property needs to be sold to repay the loan. With said two years to go existing tenant quits leaving a two year tenancy to cover last two years no longer allowable. So owner will presumably have to sell early or suffer a two year rental void. Either way another rental property is removed from the scene.

Monty Bodkin

12:16 PM, 2nd July 2018
About A year ago

So much for good old Tory values of mobility of capital and labour.
On yer bike? No point if you can't rent a home when you get there.
Have these faux Tories learnt nothing from history?

Annie Landlord

12:21 PM, 2nd July 2018
About A year ago

I think your headline should be Government looks to throw TENANTS under the bus, because it is always the most vulnerable tenants who suffer when anti landlord strategies are introduced. My tenants have been with me for 5 or 6 years and none have any desire to move. One tenant quite regularly misses paying the rent and doesn't take care of the house very well, but I have been flexible to enable them to stay because they have children in a local school. Just one more whammy from government and I am going to have to sell earlier than I intended. Councils have no houses available, so tenants who are evicted, by decent landlords who can't financially continue, will end up in council homeless accommodation. How does that help children??
But hey, the government is probably eagerly awaiting all that 28% capital gains tax they will get when thousands of landlords sell up.
If government and councils REALLY cared about tenants, they would find, prosecute and ban the criminal landlords. Instead, they introduce more and more legislation, but the criminal landlords operating under the radar continue to make tenants' lives a misery.

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