17 August Government Plans for Compulsory 3-Year Tenancies might just become a Reality
Speculation is growing that the government could be about to announce three year tenancies for private renters.
It is a scheme long-favoured by the government and the Sun newspaper has recently stated that a decision could be made within days. This comes despite the fact that there is presently a formal consultation process underway with responses being accepted up to 26th August 2018.
The Residential Landlords Association has warned the government not to announce any decision before the consultation process has closed and all responses have had time to be considered. They warned that an early announcement would represent a “huge breach of trust in the democratic process.”
Though the RLA supports longer-term tenancies it warns against them being imposed as the norm, citing a survey conducted on their behalf which shows the majority of landlords believe the use of financial incentives such as tax relief would be the best way to ensure that landlords offered longer-term tenancies to those who want them.
This was in fact one of the options proposed in the government’s consultation.
RLA Policy Director, David Smith said; “It would be highly irregular for the government to make an announcement on longer tenancies next week before the consultation has even closed and it has had chance to properly consider all responses. As well as showing disregard for recognised procedure, it would suggest that the government does not want to listen to those who will be directly affected by any change”
He continued; “The government should work with landlords to introduce change that improves the rental process for both landlords and tenants, otherwise there is a danger that even more landlords will leave the sector which is already shrinking.”
Whatever the outcome, the simple fact will remain that property will continue to be a sound long-term investment and will continue to offer better, more stable and more consistent returns than almost any other form of investment opportunity.
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