3 Year Tenancy Agreements

The share of houses peaked in the early 2000s with 71% of households, but has fallen to 63% in recent years. In recent years, homeowners have been hit hard by a series of tax increases, including a 3% increase, a rejuvenation of the amount of mortgage interest tax relief that could be claimed, and an end to the “wear and tear” allowance and deposit protection. In 2019, a ban is also expected to come into effect, preventing homeowners from charging fees to cover expenses such as credit checks when they register for real estate. However, a recent study by online landlord MakeUrMove showed that the overwhelming majority of tenants do not want three-year leases, but prefer 12-month contracts. However, they did not take into account the fact that there are many different types of tenants with many different requirements. They do not believe that long-term rent is inappropriate or even preferable for many tenants, and this “One Size fits all” approach to regulating the private rental industry does not recognize the multiple needs not only of tenants across the country, but also of landlords. Dan Wilson Craw, director of Generation Rent, said it was time for the 30-year-old rental rules to be revised. According to the government, the average tenant stays in the same property for four years. Yet 81% of leases are only six or twelve months. BM Solutions also allows a three-year AST. From personal experience as a tenant until last year, I bought property to rent three times in five years, as the first property exceeds me and the second was in the wrong area for my needs.

If all tenants are included in three-year leases, tenants who rent temporarily because they want to buy, nor tenants who rent for work or tenants who rent for the first time with their partners, are not taken into account. Within our company, we find that the vast majority of tenants who wish to break a rent of 6 or 12 months in advance are couples who divide. Even business rentals that ask longer can apply for break clauses so that they can withdraw if necessary. “The three-year model is one option among many, and the consultation seeks disadvantages on the longer minimum rents used in other countries, as well as on ideas for implementing the agreement model,” the government said. Three-year leases will not help landlords who want to evict a bad tenant, and it could be more difficult if they apply for a BTL mortgage, as the six-month trial period can discourage lenders from a three-year lease term.