Will three-year tenancies soon be the norm?

Will three-year tenancies soon be the norm?

Three-year tenancies could soon be the norm if the UK government is able to push through its new proposals on minimum tenancy. New proposals are currently being put forward by the government to provide more security to people worried about short-term tenancies and to provide greater regulation to the sector.

Home ownership rates in the UK fell to 63% in 2017, compared to 72% just a decade ago, underlining the growing reliance on the rental sector. Whilst the supply and demand issue on housing in the UK continues, many people are turning to renting. Whilst it is true that many younger people are currently priced out of the market because of rising costs, there is still a large number of renters who choose to rent because it suits their lifestyle and gives them the flexibility that they want

Interestingly, recent research by Direct Line for Business, revealed that 70% of UK tenants have no plans to buy a property in the future, illustrating how times have really changed to the mindset of your average tenant.

Due to the continued growth of the private rented sector, the UK government is keen to introduce more legislation and attempt to improve standards of the sector in general. This has led to a focus on build-to-rent projects with better amenities and management of rental property so that tenants are not short-changed by their landlords.

Commenting on the potential tenancy reforms, James Brokenshire, Communities Secretary for the UK government, said: “It is deeply unfair when renters are forced to uproot their lives or find new schools for their children at short notice due to the terms of their rental contract. Being able to call your rental property your home is vital to putting down roots and building stronger communities.”

Consultations on minimum tenancy lengths are likely to continue until August 2018 so it will be interesting to see how things pan out.