The rental market is likely to see an increase in the number of long-term tenancies as more and people turn to the sector.
This is according to Mark Hayward, chairman of the National Federation of Property Professionals, who claimed…
“There is a pressure for longer tenancies to become the norm”.
It was suggested landlords looking to enter the private rented sector should welcome longer-term leases, as this will help to protect their return on investment. Otherwise, buy-to-let owners may find they suffer void periods every six months.
Mr Hayward commented that…
“Current figures show that between 12 and 14 per cent of all households are rented”.
“The figure is predicted to rise to “at least” 20 per cent if not more by 2020, as more and more people are pushed out of the housing market”.
Strategy, risk and economics director at Hometrack Gary Styles recently claimed there has been a significant twist towards rental, away from owner-occupation.
Let us know your thoughts…
It’s a nice idea, but surely only relevant to unencumbered properties?
Most BTL lenders only allow an AST to be a maximum of 12 months. They don’t allow “longer terms”.
Would only work if lenders allowed long term tenancies.
This will NEVER occur until a LL can require a tenant to leave immediately the LL wishes.
This will never happen unless the Housing Act is changed in favour of LL being able to obtain instant possession of their property for whatever reason.
This will NEVER happen which is why there will be NO long term tenancies.