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One third of landlords deterred by compulsory three-year tenancies

Almost one third of landlords say they would be less likely to purchase new rental property if compulsory or default three-year tenancies were introduced, according to a study by Paragon.

In its PRS Trends research, the bank surveyed 200 landlords following the government’s recent consultation, ‘Overcoming the barriers to longer tenancies in the PRS’.

When asked if the introduction of a compulsory three-year tenancy would make them less likely to consider certain tenant types, 36% of landlords said they would be more likely to consider older couples, followed by retired people (29%), families (25%) and older singles (25%).


Interestingly, landlords felt a compulsory three-year agreement could potentially make them less likely to consider mobile and itinerant groups, including students (45%), migrant workers (40%) and young singles (24%).

Having updated its mortgage conditions to facilitate longer term tenancies back in 2014, Paragon continues to encourage greater security for tenants. Today, many of the biggest lenders in the buy-to-let sector support landlords offering tenancies up to three years in duration.

John Heron, director of mortgages at Paragon, said landlords are highlighting that the diversity of the tenant population calls for diversity of tenancy agreements.

“While some groups value greater security, many other tenants favour flexibility. Young professionals, for example, value the flexibility that the PRS brings to move to different areas and to different types of property,” he explained.

“In light of these findings, rather than impose longer-term tenancies as the primary or default arrangement in law, it may be preferable to bolster tenants’ rights to choose from a range of different tenancy lengths and boost incentives to landlords to enter long term arrangements where requested.”

  • G romit

    The only people asking for 3yr tenancies are rogue tenants who get evicted regularly for non payment of rent, damaging properties, and/or being antisocial. EHS research shows average tenancies in excess of 4yrs proving good tenants can stay as long as they want.

    Of course, the faux charity, Shelter, who houses no one are jumping on this bandwagon as it suits their narrative. Rattling their collections boxes to pay their executives their 6 figure salaries.

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    Out of 17 tenancies I have 5 who want a long term stay and the rest want the freedom to leave at short notice if they have to. This is what they say and I am happy to agree. Even the long termers prefer being able to leave when and if their circumstances change and sometimes they do.
    Leeds city v Broadley CA 2016 that if they have a 3 yr tenancy they are liable for the council tax until the end. If they up and leave who pays, Shelter?

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    • 15 November 2018 05:53 AM

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