Labour want German style indefinite tenancies

by Property 118

11:35 AM, 11th March 2019
About 3 months ago

Labour want German style indefinite tenancies

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Labour want German style indefinite tenancies

Labour Shadow housing secretary John Healey has gone one further than the pledge in their manifesto of 2017 of committing to make all PRS tenancies a minimum of a three year term. He would like to see ‘German style’ tenancies of indefinite length introduced as a matter of default upon the PRS to increase renter security.

In Germany the average tenancy last an approximate average of 11 years compared to four years in the UK.

John Healey said: “People shouldn’t be living in fear of losing their homes. The insecurity of renting is a power imbalance at the heart of our broken housing market, where tenants are afraid to report problems in case they are evicted, and families with children are forced to move at short notice.

“Many landlords provide decent homes that tenants are happy with, but the government is allowing rogue landlords to take advantage of good tenants. Renters deserve better.”

Greg Beales, Campaign Director at Shelter, responded positively to the plan saying: “Private rents are already expensive, so when you add short term contracts into the mix, the situation for renters is pretty tough.

“Given that one in four families now privately rent their home, an alarming number of people are at the mercy of no-fault evictions. Right now a family can be turfed out for no reason at any time, and saddled with not only the cost of moving but the huge burden of uprooting their lives.

“It doesn’t have to be this way. We look forward to seeing what the government brings to the table on longer tenancies, and hope they will give renters the security and stability they deserve. Our own research shows three quarters of England’s private renters think they’d benefit from a longer tenancy. So the message is loud and clear: longer tenancies should be written into law.”

However, without any security for landlords, or an ability to find finance on tenancies longer than 3 years, it is not clear how many of these new indefinite tenancies Mr Healey or Shelter expect to be available to renters.



Comments

Rob Crawford

11:59 AM, 11th March 2019
About 3 months ago

...but of course their will be provision for tenants to leave at anytime without penalty! My AST's are generally for a six month fixed term after that they flow into a contractual monthly periodic. This gives the tenant and myself the option to opt out (if issues arise in the relationship one way or the other). If this is removed there must be a quick and easy court process for landlords to sever the tenancy agreement if things go wrong. Including where the landlord is threatened with negative equity of even bankruptcy due to things outside his/her control (like the introduction of extortionate tax rules etc).

SimonP SimonP

12:00 PM, 11th March 2019
About 3 months ago

Is John HealeyHealey really his name?

Freda Blogs

12:05 PM, 11th March 2019
About 3 months ago

If Labour gets in, I'm out.

This and last week's PRS 'Right to Buy' nonsense spell only grief for landlords. Enough is enough.

Appalled Landlord

12:14 PM, 11th March 2019
About 3 months ago

John Healey is the rogue for suggesting that going back to the era of tenancies for life would benefit tenants. Tenancies for life drastically reduced the number of rented dwellings in the 20th century. They would do the same to supply this century, because landlords would sell up instead.

Appalled Landlord

12:15 PM, 11th March 2019
About 3 months ago

Greg “disgusting” Beales, Shelter’s campaign director, knows very well that “Right now a family CANNOT be turfed out for no reason at any time.”  Shelter’s website explains how to wait months for a court order, then ignore it and wait months for the bailiffs.

Mike

13:02 PM, 11th March 2019
About 3 months ago

Ask Mr Healey, what benefits do we get when we have to evict one set of tenants and then spend some more money on tidying up the place, if furnished we may even have to buy new furniture like beddings, etc, new carpets, what possible incentive have we got in throwing out one set of tenants and getting a new set of tenants?
No we want tenants to stay as long as they wish, as long as they respect the place and rules, not abuse our property, pay us our rent on time, we want all good tenants to stay all their life if possible, last thing we want is to evict good tenants.
but when tenants become stropy, their behaviour becomes unacceptable, roudy, uncooperative, stops paying rent on time, start piling up a heap of rubbish, start to destroy our properties, cause illegal alterations and deliberate or incidental damage, then it is time to tell them to disappear and find another property and another landlord to abuse, when we have had enough of a rouge tenant..

Anne Brown

13:09 PM, 11th March 2019
About 3 months ago

Reply to the comment left by Freda Blogs at 11/03/2019 - 12:05
Lets not forget it was George Osbourne and Co. who brought in all the new taxation against Landlords, yes a Tory government so no point in hammering Labour, Tories are worse. Also, a periodic tenancy is just like an open ended tenancy and providing there remains adequate criteria for seeking procession of your property then there is little to fear. The system as it stands gives tenants over 4 months to vacate ( 2 months for the first notice and same for stage 2, if they still don't go then you call the bailiffs and this takes a few weeks) seems reasonable, it takes awhile for tenants to find new suitable accommodation. All Landlords legal expenses are tax deductable!

Whiteskifreak Surrey

13:11 PM, 11th March 2019
About 3 months ago

What everyone who longs for German-style tenancies forgets is that in this type of tenancy the tenant is responsible for upkeep of the property. Quite often has to even install all own kitchen cabinets. Renting the unfurnished property is a norm, and landlord usually only collect a rent. Besides, if a LL wants the property to go to their family or want to sell, they can evict (I do not know a timescale, though). Then the property has to be left in the same state as when tentants rented it. Eg, if they installed the kitchen, they will have to remove it.... Tenant will have to paint, pay for everything and will not be able to call a Landlord because they think there is a smell of gas. They are responsible for gas boiler, will have to insure the place, etc...
Of course in this country they want something they have no idea of. Or they might want the service they have now, with a tenancy infinity... Something tells me that this is the case....

Anne Brown

13:17 PM, 11th March 2019
About 3 months ago

Reply to the comment left by Whiteskifreak Surrey at 11/03/2019 - 13:11
thank you for your knowledge of the German system, this is an important distinction - sounds more like a commercial let in this country where you lease a shop unit and have to pay for all the repairs and maintenance and legal costs associated.

Whiteskifreak Surrey

13:19 PM, 11th March 2019
About 3 months ago

Reply to the comment left by Anne Brown at 11/03/2019 - 13:17
Possibly. I can find more details, have a few friends in Germany, some of them are still renting.

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