Chancellor Philip Hammond has listened to the RLA’s plans to encourage landlords to offer longer tenancies, announcing he will be launching a consultation on the issue – but is it enough?
In its budget submission the RLA asked the chancellor to introduce tax incentives for landlords willing to offer the ‘family friendly’ longer tenancies the Government wants, to offer greater security for tenants.
Longer tenancies mean greater risks to landlords – due to the prolonged processes needed to regain possession in the fixed term if the tenant stops paying the rent. These risks have been exacerbated by recent changes to mortgage interest relief.
And while the association welcomes the news the Government is looking at the options, it is disappointed the chancellor has not take the opportunity to take positive action to support landlords in offering these tenancies now.
In a recent survey by the RLA of almost 3,000 landlords, 63% reported that they would offer a tenancy of 12 months or longer at the request of the tenant – so the will is there.
Last week the RLA warned the Government tenants cannot live in consultations.
It said that what landlords and tenants need is action on the ground to boost the supply of homes during this time of housing crisis, after it was revealed there are currently 15 consultations currently underway within the PRS.