The RLA has submitted it’s response to the Government’s consultation into long term tenancies – and the barriers preventing landlords from offering them.
The consultation, overcoming the barriers to longer tenancies in the private rented sector, closed yesterday (Sunday) with the RLA response outlining both the difficulties faced by landlords and potential solutions.
Previous RLA surveys show that around 40% of our members would be prepared to offer a longer tenancy if it was asked for under the current circumstances. However, they say tenants do not ask and, in some cases, do not desire longer leases.
Barriers for landlords
Members who responded to our most recent survey raised a number of issues
- Some landlords feel it is important for them to get to know the tenant first, before offering them a longer term tenancy.
- Some pointed to restrictions in mortgage conditions and insurance policies preventing them from offering longer term tenancies.
- And some pointed to the complex court process to regain possession. Overall, over three quarters of landlords (77%) said that they do not offer longer tenancies because of the time and cost to regain possession, although more than half (55%) said they would be more likely to do so if a more efficient court process was available.
Demand for longer tenancies
As well as there being barriers for landlords in offering longer term tenancies, recent research from RLA PEARL found, 38% of landlords who responded said tenants don’t want them.
Echoing this, reports from mortgage lenders say that they rarely experience landlords who ask for mortgage terms that restrict tenancies of over 12 months (where these exist), to be lifted.
Potential solution – tax incentives
The RLA is proposing that the government introduce a tax allowance that increases the longer the tenancy lasts in a bid to encourage landlords to offer longer tenancies for those that want them.
45% of landlords in our recent survey reported that the lack of financial incentives was a barrier to offering longer tenancies and the RLA believes that introducing incentives in this way would also encourage landlords to find ways to deal amicably with minor problems rather than evicting the tenant and losing the relief.
You can read the RLA’s consultation response in full here
- Interesting in learning more about longer term tenancies and what the future could hold for landlords? Come along to Future Renting, taking place on 13th September in London.