Why the Shelter 5 year rental contract proposals will not work
Housing Charity Shelter is proposing 5 year rental agreements but this is not viable as most landlords would be in breach of their buy to let mortgage conditions if they were to offer anything other than 6 or 12 month Assured Shorthold Tenancies.
However, I believe I’ve found a solution.
Some landlords want long term tenants as much as some tenants want long term security.
I would be delighted to talk to Shelter and any other interested parties about my solution which I plan to launch within the next few weeks. Look out for “The GOOD Landlords Campaign”, details of which will first be released on the Property118 forum and then shared via Twitter, Facebook, LinkedIn and other social networks.
We are also a Google News feed so if you want to get the news within minutes of it being published just set up a Google Alert for “GOOD Landlords Campaign” or follow me on Twitter @iAmAlandlord
Details of the Shelter proposals were first revealed by the Guardian Newspaper’s website at 09:45 am this morning – LINK
Press and media enquiries to [email protected] please.
The industry appears to agree >>>
@iamalandlord On why @shelter 5 year AST proposal may not work for landlords and potential solution (TBA) property118.com/?p=32137 @property118
— Property Ombudsman (@TPOmb) September 21, 2012
“The GOOD Landlords Campaign” can’t wait to see what all this entails Mark @iamalandlord fb.me/1rFD0SNB2
— RentPro(@rentpro) September 21, 2012
@antoniabanceON the very day I read of Shelter’s campaign I read this from alandlord trying to make a difference is.gd/04e7yq
— Ben Reeve-Lewis (@BenreeveLewis) September 21, 2012
Comments
Have Your Say
Every day, landlords who want to influence policy and share real-world experience add their voice here. Your perspective helps keep the debate balanced.
Not a member yet? Join In Seconds
Login with
Previous Article
Pest control, landlords or tenants responsibility?
Comments: 1108
12:23 AM, 22nd September 2012, About 14 years ago
I would like to be able to offer a 18 year tenancy; but can’t due to mortgage terms.
Any tenants out there want to know that they can stay for 18 years in my flats and house.!!
Do you think that is long enough to satisfy Shelter!!!?
Member Since January 2011 - Comments: 12193 - Articles: 1395
1:28 AM, 22nd September 2012, About 14 years ago
Hi Paul, I’m sure you would like to have a good tenant for 18 years, wouldn’t we all. However, what tenant would want to commit up front to living in a property for a very long time? What landlord could be so certain his or her circumstances might change but not be able to get out of a deal? I’m about to reveal something within the next two weeks which will give both parties what they really want without breaching mortgage conditions or losing flexibility. Sounds impossible doesn’t it? Well I’ve found a way and Tessa Shepperson at Landlord Law is drawing up the legal documents which will be made available to all sponsors of The GOOD Landlords Campaign. That’s about as much as I can say for now – watch this space!
Member Since June 2013 - Comments: 704
11:48 AM, 25th September 2012, About 14 years ago
I’m interested why 5 year terms will not work per se.
They seemed to just fine as Protected Shortholds courtesy of the Housing Act 1980 until the 1988 Act came along and introduced ASTs. I see no reason why they should not do so now for appropriate Landlords and tenants.
5 year term, Landlord able to give 3 months notice in last year, no automatic tacit relocation rights for the tenants – where is the problem? You can always build in a clause obliging tenants to decorate after three years.
Assuming they have a good tenant surely the only reasons a Landlord wants a property back instead of renting it very long term is to sell to raise capital or for family reasons/personal occupancy?
Member Since January 2011 - Comments: 12193 - Articles: 1395
2:54 PM, 25th September 2012, About 14 years ago
The problem is buy to let mortgage conditions only allow 6 or 12 month AST’s.
8:11 PM, 25th September 2012, About 14 years ago
Most of people now a days are not stipulated to single place as they get many transfers with the project or willing to change of work/place.. So most of them are preferring for the short term agreement!!as there are few people who are looking for this long period of tenure!!
Member Since January 2011 - Comments: 12193 - Articles: 1395
9:13 PM, 25th September 2012, About 14 years ago
It’s interesting that you say “few people who are looking for this long period of tenure”. I understand that over 1 million tenants in the UK have children, I doubt many of them want to move every 6 months or so. We must remember that over 4 million homes in the UK are rented and therefore even the smallest niche’s can still represent a LOT of people. I doubt pensioners would want to move too often either. I accept that contractor and students are far less likely to want long term security of tenure.