It comes as no surprise that the Government has reached the decision to scrap plans for mandatory three-year tenancies, as an overwhelming number of tenants have voiced that they were not interested.
A study from online letting agent MakeUrMove found that only 7.2% would prefer a tenancy lasting three years. 30% prefer 12 months, and a further 20% stated that they felt tenancies should last no longer than two years.
Now, it has been made known that the Treasury is against the idea of the original plan to introduce three-year tenancies, as it believes this could potentially put many off becoming property investors.
However, Prime Minister Theresa May’s senior aides seem to be encouraging the idea to keep plans in place, but make them voluntary. The reasoning for this is apparently because they are worried that the plan would be defeated in the Commons if it were put forward as mandatory.
Political opinions aside, from the point of view of both landlords and tenants, a voluntary system may be the middle ground needed to keep everyone happy. This way, landlords will be able to make the decision for themselves whether to provide three-year tenancies as an option, and tenants can then have that choice.
For landlords, this means securing long-term tenants, lowering the amount of void periods in a property. For tenants, means the opportunity for security and to make a rented house their home.
MakeUrMove managing director, Alexandra Morris, commented: “Many tenancy agreements are currently set at twelve months with a six months break clause and we’ve found nearly a third of tenants are happy with this length. Our findings reinforce that the majority of people want either the flexibility of a shorter rental, or the security of a much, much longer term.
“The Secretary of State for Housing, Communities and Local Government stated that ‘being able to call your rental property your home is vital to putting down roots and building stronger communities’, yet our research shows that 87% of tenants already think of their rental property as a home under the current regulations.”