A recent report on the affordable housing market recommended increasing the length of tenancy contracts in the UK from six months to 24 months. But an overwhelming 82% of flat and house-sharers are opposed to the move, according to a poll carried out by flat and house share website SpareRoom.co.uk.
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Although most tenancy contracts include break clauses, effective after a certain period of time, only one in ten (10%) respondents agreed with the proposals. Whilst longer tenancies would benefit families needing greater stability, this is not viewed positively amongst house sharers, who tend to be young professionals who wish to stay flexible.
But it is not only tenants who oppose longer contracts. Landlords are also voicing concerns over current lending regulations and possession laws that, they feel, do not go far enough in allowing them to get rid of bad tenants and keep good tenants.
Matt Hutchinson, director of SpareRoom, explains: “Extended contracts make people anxious, because they think they’ll be locked in for longer and the landlord will be able to increase rents at any point.
“Given that one of the benefits of renting is the flexibility to relocate to another area or a more suitable property if circumstances change, we can understand why people might be wary of longer contracts.
“Flat sharers also voiced concerns that a 24-month tenancy could place further restrictions on the tenants landlords will accept as they seek to reduce their risk, with stricter rules on deposits and guarantors. It is unclear whether the proponents of these changes have taken such factors into consideration.
“Many landlords would be happy to extend tenancies for good tenants but are precluded from doing so by mortgage lender restrictions. Landlords have voiced their concerns around the provision of longer tenancies, which included the difficulty of evicting bad tenants in the event they damage property or fail to pay their rent.
“A change to rental contracts that discouraged investment in property for rent could in turn serve to exacerbate the housing crisis rather than to resolve it.”
Further Information
SpareRoom.co.uk polled 1,000 users in Sept 2012, and asked them:
How would you feel about the length of a standard tenancy contract being increased to 24 months?
The responses were as follows:
Positive – 10%
Neutral – 8%
Negative – 82%
Proposals published by Housing Voice: The Affordable Homes Alliance in their report into ways to fix the ‘broken’ housing market, including extending tenure in the private rental sector from six months to 24. The full report is available here.
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