Landlords in the UK are urging the government to back longer tenancies in rented housing
Landlords are urging the government to back longer tenancies in rented housing to meet the needs of the growing numbers of families with children who rely on the sector for their home.
Almost 40 per cent of private rented homes have at least one child living in them, with such families seeking long term stability to settle into their communities and local schools.
Rather than resorting to legislation to impose longer tenancies on the sector, where tenants have already been living in their rented homes for almost four years, the RLA is calling for tax reforms to encourage and support more landlords to offer them.
The government has already admitted that such incentives could be quicker to implement than legislation.
It would also ensure that the vital flexibility the sector is good at providing is retained, enabling those wanting short term tenancies to quickly access new work and educational opportunities.
In its submission to the Treasury ahead of the Budget on 29thOctober, the RLA is calling for tax relief on rental income which could increase each year a tenancy continues up to a maximum of five years if the tenancy is renewed. The relief would then remain at this level.
Alongside this, the RLA is calling on the Government to develop its plans for a housing court to speed up justice for tenants and landlords if something goes wrong in a tenancy, especially long term tenancies.
At a recent event hosted by the RLA, the Housing Secretary, James Brokenshire confirmed that it will be consulting on a housing court in the next few months.
The RLA’s research exchange, PEARL, has found that 73 per cent of landlords would offer longer-term tenancies with a combination of financial incentives and court reform to ensure that they have the confidence that where they provide a longer tenancy they can swiftly regain possession in cases such as tenants failing to pay their rent or committing anti-social behaviour.
Policy Director for the RLA, David Smith said landlords recognise the demand for longer tenancies which provide stability for tenants and landlords.
Recent statements by MPs suggest that positive taxation to support longer tenancies would gain support in Parliament, enabling such tenancies to become available far quicker than imposing them by law.
Smith said they call on the Chancellor to back this pragmatic proposal.
The articles are for information purposes only and Invest for Property shall not be held responsible for any errors, omissions or inaccuracies within it. Any rules or regulations mentioned within the website are those relevant at the time of publication and may not be the most up-to-date.
Invest for Property does not endorse any of the products or services that appear on it or are linked to it and are not liable for any action that you may take as a result of the content of this website, or losses or damage you may incur doing so.
There is no obligation to purchase anything but, if you decide to do so, you are strongly advised to consult a professional adviser before making any investment decisions.
Please remember that investments of any type may rise or fall and past performance does not guarantee future performance in respect of income or capital growth; you may not get back the amount you invested.