Three-Year Tenancy Agreements

Posted on: April 13th, 2021 by designer No Comments

Heawood is for three-year leases because he thinks they are “better” for both landlords and tenants. “There is now more choice in the marketplace, but if it became law, there would be lenders who would have to review their credit requirements to accept three-year STAs. One of the advantages of a one-year lease is that landlords can react relatively quickly to changes in financial circumstances or to unwanted tenants. The proposals could have dramatic consequences for the buy-to-the-market industry, which arrived after the introduction of guaranteed short-term rent in the years. The six-year and one-year contracts gave lenders the confidence to grant mortgages against real estate they knew they could reclaim short-term property if necessary. But a three-year term should make lenders cautious when granting loans, or they can raise the interest rate to reflect the additional risk. The Secretary of State for communities proposes the introduction of a minimum tenancy period of three years with a six-month clause. It appears that the government may have decided not to “force” its proposed three-year leases for the private rental sector. Simon Heawood, CEO and founder of Bricklane, called the decision to abolish three-year leases a “confused government turnaround.” In plans published today (2 July 2018), Communities Minister Rt Hon James Brokenshire MP proposes to introduce a minimum three-year ten-year ten-year ten-year ten-month break clause to help tenants take root and provide longer-term financial security to landlords. The consultation examines whether exemptions should be granted to the three-year rule for student housing where rents are linked to the academic year. The government appears to have rejected proposals that give tenants a three-year contract.

About 29% of tenants said they actually wanted to have a lease of more than three years, and 43% of the tenants surveyed had spent more than five years in their current tenancy.

Comments are closed.