Three Year Tenancy Policy Supports Tenants and Landlords
It would be fair to say that in the letting market, not every decision is of benefit to Landlords and tenants. While it is hoped that Landlords and tenants hold a harmonious relationship where they work together to achieve a strong relationship, there are times when tenants and Landlords can seem like adversaries. This means there will be times when a step taken to improve matters for one party may negatively impact on the other.
There will also be issues that split opinion, with some people thinking a new way of working will benefit all while others thinking it will cause ructions in the market. It would be fair to say that there is a difference of opinion on moves to lengthen tenancy agreements.
Family friendly letting options will be of benefit
It is believed that the Government is backing the use of three-year tenancy agreements to make letting more family friendly. These agreements would allow households to budget more effectively, safe in the knowledge of what they will have to pay for the length of their agreement. This should provide consistency for a family, and if there are young children at school or with friends in the local area, this will be of benefit.
The benefits of offering a settled and consistent home life when bringing up a child are well stated, and if longer tenancy agreements make it easier for households to stay in one place, this is good news.
With respect to Landlords, it is obvious that some professionals will not like the fact that they have fewer opportunities to increase rent. There are times when rent increases must occur and if a Landlord is unable to do so, they may find that they no longer make a profit. This is an issue that some Landlords will have to contend with but equally, longer tenancy agreements can help minimise void period.
Void periods are unhelpful to Landlords and should be avoided if possible
A void period is unwelcome news for a Landlord because this is time when they are not generating income. Also, when a property is void, the Landlord will likely be working to fill the property, which costs time and money. In many regards, having a person or household in place, even with no ability to increase rent, is better than having no one in the property.
The rental market is hugely important in the UK these days. There is an increasing number of people and families who are being priced out of the property market, which means that the reliance on rental property will grow. It is essential that all parties within the rental market are given the opportunity to find an agreement that works best for them.
Not everyone will be keen to sign a three-year tenancy agreement, so it is not as if it should become mandatory. However, for the households that would benefit from it, this is an option that could make life easier.
If you are interested in this matter or you have any issues you need support with in the lettings market, come and speak to Villabela Properties. We look forward to helping you soon.
View all News Blog