Clear support of Long-Term Tenancies for renters was one of those points of the Housing White Paper way back in February of this year.
When the Government finally unveiled it in February, it received a mixed response. There were a few points that were generally accepted as ‘good’. But response to the majority was dependent on perspective.
One detail of the White Paper – “Fixing Our Broken Housing Market” – was the Government’s move towards increasing housing of all tenure. That includes better support of the rental market. Within that view, however, some smaller points didn’t please everyone.
While it works for some people – among both tenants and landlords – it’s not ideal for everyone. Let’s take a quick look at why that is and if the Government is right on Long-Term tenancies.
Why Long-Term Rental Tenancies Will Work
As the UK’s population grows, the way people live and make housing plans, has changed too. In the past, buying a home of your own was a natural progression for most Brits. And it was possible too!
Now, more people live in rented accommodation, either by choice or through necessity. This means demand for rental properties from every type of tenant is rising – including for families with children.
Many people would want a Long-Term tenancy to give them pace-of-mind that they can stay put for a number of years. But, with children, the pressures increase:
- Ability to stay at a good school.
- Being close to family and friends.
- Give children stability.
- Know your costs or address shouldn’t change dramatically or quickly, allowing you to plan for the future.
Not only will it benefit tenants who want stability and are happy with the property and area they’re living in. It will also be good for many landlords too. That’s because having good tenants who pay their rent and look after your home is good news. It’s even better if they agree to stay for 3-5 years or more.
A longer tenancy agreement means a landlord is confident of any property-related payments for longer than 6-12 months. Fewer void periods means more income, profit and money to set aside for future improvements and maintenance.
A survey from homeless charity Shelter shows around one third of landlords it surveyed, like the idea of longer tenancies. And, a further third said they were ‘open to the idea of them’.
When They Won’t
But, like most things in this modern world, choice and variety are key. So, it’s not surprising that some landlords – and tenants – prefer shorter tenancy agreements.
For tenants, a 6-12-month agreement leaves them free to move when they need to, for work or family purposes. It also means that if they’re new to an area and don’t like it, they can move quite quickly.
From a landlord’s perspective, a short tenancy should make it easier to get rid of bad tenant. That includes those who don’t reliably pay rent, or take care of the property. Or, if something happens and the landlord decides to sell-up or renovate their property, it means a shorter wait.
One more, that both landlords and tenants might favour; in situations when the landlord and tenant relationship doesn’t work.
How to Give Everyone What They Want
This is something that every Government around the world, has, at some point or other, tried to do – and failed! But, in the case of housing and tenancies, there is a way to almost achieve it.
How? By putting processes in place to support Long-Term Tenancies and make them fair for both tenants and landlords. And, at the same time, allow short tenancies to continue, with similar considerations to protect and support both parties.
If you’re a fan of longer-term tenancies, but still worry about tenants and problems, then Incrent has the solution. We manage your rental property for a fixed period – anywhere from 12 months to five years. During that time, your rent is guaranteed. And, we take care of everything from vetting tenants, to sprucing up the property and ensuring the legalities are in order.
If that sounds like something you’re interested in, then get in touch with Incrent today.
Alessio Tondo & Fabio Tarantino
Two ordinary guys who turned their passion into a business.
Rent 2 Rent specialists, London
Focused on how to Increase Your Rental Income.