Housing Minister James Brokenshire has finally announced the government’s planned policy to offer buy to let tenants a mandatory three-year tenancy.
Speaking to an audience at think-tank The Policy Exchange, released some scant details of the move that was outlined in the last Budget by Chancellor Phillip Hammond.
Brokenshire’s speech was themed on giving everyone a decent, affordable and secure home.
“Private rents no longer track people’s earnings. In some parts of the country you can expect to spend more than half of your salary on rent,” he said.
“We should never forget the people behind these numbers. People who just want a fair chance.”
The minister went on to describe his policy priorities, which include:
- New laws to limit leasehold charges on new homes and capping future leasehold flats to peppercorn rents;
- A consultation aimed at extending tenancy agreements to a minimum of three years;
- A further call for evidence aimed at establishing a housing court.
“We are bringing real change to make renting more secure,” said Brokenshire.
“I know this is particularly important for the growing number of families, vulnerable tenants and older people who rent and live with the uncertainty of suddenly being forced to move or fear eviction if they complain about problems with their home.
“Which is why I’m announcing the launch of a consultation today on overcoming the barriers to longer tenancies in the private rented sector.
“We’re proposing a new longer tenancy model, of a minimum of three years, with a six-month break clause to allow tenants and landlords to exit the agreement early if needed.
“I will also be launching a call for evidence in the autumn to better understand and improve the experience of people using courts and tribunal services in property cases, including considering the case for a specialist housing court.”
The consultation document and to respond to the 3 year tenancy proposal can be found here.
Not sure what is meant by “buy to let tenancy” – is it an AST?
I’ve long thought that two months notice is grossly unfair on long term tenants. Maybe a sliding scale where after say five years they get six months. I would be very wary of granting a three year tenancy to an untried tenant – maybe once they had already been with me for a couple of years.
People’s earnings have not kept track with anything which is one of the root causes of the housing crisis along with the lending criteria and the price and lack of new dwellings to meet demand. Rents are correlated to property prices so this is a classic case of addressing the symptoms and not the cause.
You should both complete the online response form. It’s fairly straightforward and quick to go through.
How does this work with people who work in different Cities on 6 or 12 month contracts. Students, People whose relationships break down. The list is endless of situations that wouldn’t suit a 3 year contract
You should put this point across in the quick and easy online response (linked in article)
Hi, is the 3 year prospectice AST only applicable to England under present consultation or focused nationwide?