Long duration ASTs to combat proposed changes?
Hi, I understand the new Labour government will quite soon look to end ASTs, as the Tories almost executed this within the defunct Renters (Reform) Bill.
If you have a reliable current tenant or a promising new one with excellent references (though unproven), how smart is it to use a Deed instead of an AST (which maxes out at 3 years) for, say, 5 years or more, especially if they want a long-term stay?
This could greatly assist landlord planning, assist 6 monthly inspections, and avoid rapid turn over of tenancies where tenants’ notice periods will be extremely short.
The Deed would include an annual inflation increase clause.
The key question is whether any new legislation could somehow render such a Deed irrelevant or non-functioning, although I am doubtful that could be achieved.
What do others think of this?
Thanks,
Andrew
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Save Property118, Protect Landlord Rights
Member Since September 2018 - Comments: 3538 - Articles: 5
5:08 PM, 20th November 2024, About 1 year ago
worrying about the effect the RRB wil have on tenancies is at the mo, still unknown.
As long as all referencing is done and the tenant is reliable, remember they are looking to let your property as it ticks their boxes too.
Regardless of what happens in the future if your T remains happy to stay then you have a long term tenant. Why else would they need to move? If you really are keen to keep them on, keep the rent just below the rest of the market so there is financial incentive for them to stay. Eveyone is a winner.
Tying the T down now also means tying yourself down. Remember even the best tenants in the world have the potential to still turn ‘rogue’. Why make potentially things more difficult for yourself?
Member Since March 2023 - Comments: 1506
5:11 PM, 20th November 2024, About 1 year ago
This won’t be the only think that gets stuffed by making all tenancies a rolling ‘AST’. Government energy upgrades (solar panels, insulation etc) for tenants also require a minimum term contract for it to be approved.
Member Since October 2020 - Comments: 1177
8:53 AM, 21st November 2024, About 1 year ago
Reply to the comment left by RonaldRoo at 20/11/2024 – 17:00Drafting a deed is a reserved occupation for lawyers. If you agent did it himself he may have broken the law, as well as saddling you with a duff agreement.
Letting the agent talk you into a fixed tenancy that long was a big mistake and only benefitted the agent.
You need help now from a specialist landlord and tenant solicitor to understand your options.