Government proposes minimum three year rental term | AdminBox

Government proposes minimum three year rental term

Government proposes minimum three year rental term

Government proposals to give tenants a three year minimum rental agreement has provoked a mixed reaction. Whilst some tenants may prefer a longer agreement, landlords have met the proposals with anger.

The proposals would restrict landlords' ability to ask tenants to leave at short notice. According to industry statistics, approximately 80% of tenances are set at either six months or twelve months, mostly under an assured shorthold tenancy.

These contracts leave tenants at risk of eviction, without the landlord giving a reason. Under the proposed amendments, tenants would be able to leave before the end of the minimum term, but would also have greater protection if they wanted to remain for a longer period of time. 

The government's proposals are considering whether it is unfair to ask renters to move, find new housing or schools for their children at short notice due to the terms of their rental contract. Those in favour suggest that longer rental agreements are appropriate for families who wish to live in an area for a longer period of time, put down roots and build communities. 

The National Landlords Assocation reacted by citing that only 4 out of 10 tenants preferred longer contracts, whilst 4 out of 10 do not. The remaining 20% said that when they asked for a longer tenancy, they were given it. 

Nearly half of all 25-34 year olds now live in private rented accomodation, compared with 27% a decade ago. In London, the most common form of accomodation is private renting. Home ownership levels peaked in the early 2000s, at 71% of households, but have fallen to 63% in recent years.

  • 02 Jul 2018
  • By: Paul Chapman