Why the Shelter 5 year rental contract proposals will not work

by Mark Alexander

11:18 AM, 21st September 2012
About 6 years ago

Why the Shelter 5 year rental contract proposals will not work

Make Text Bigger
Why the Shelter 5 year rental contract proposals will not work

GOOD Landlords CampaignHousing 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 mark@property118.com please.

The industry appears to agree >>>

 



Comments

0:23 AM, 22nd September 2012
About 6 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!!!?

Mark Alexander

1:28 AM, 22nd September 2012
About 6 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!

Industry Observer

11:48 AM, 25th September 2012
About 6 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?

Mark Alexander

14:54 PM, 25th September 2012
About 6 years ago

The problem is buy to let mortgage conditions only allow 6 or 12 month AST's.

20:11 PM, 25th September 2012
About 6 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!!

Mark Alexander

21:13 PM, 25th September 2012
About 6 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.


Leave Comments

Please Log-In OR Become a member to reply to comments or subscribe to new comment notifications.

Forgotten your password?

OR

BECOME A MEMBER

Variation of lease to rectify adverse possession?

The Landlords Union

Become a Member, it's FREE

Our mission is to facilitate the sharing of best practice amongst UK landlords, tenants and letting agents

Learn More