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There are many things for landlords to consider when it comes to the length of tenancy that is offered to a tenant. It may be that the tenant is looking for a set agreement, which may influence the landlord’s actions, but the landlord will likely have their own ideas. Shorter term lets may provide higher fees but there is peace of mind and consistency with longer tenancies. The choice may come down to the landlord’s personal preference but anyone looking for assistance in setting tenancy lengths will be interested to note that there might be tax incentives for longer tenancies.

The Government has launched a consultation which will consider options to implement a three=year tenancy model. There have been calls for longer tenancy periods from many prospective tenants, including families and people of the older generation. It is vital to be aware that the rental market has evolved and there is a wider range of prospective tenants looking for rental accommodation. Students and young professionals used to be the most prominent tenants but in 2018, tenants hail from all backgrounds and are all ages.

The RLA suggests long-term tenancies are not right for everyone

One option that is being considered is the use of financial incentives to shape the rental market. This is a step that is being called by the Residential Landlords Association, the RLA. The Policy Director for the RLA, David Smith, states; “With landlords having faced a barrage of tax increases we believe that smart taxation, such as that being proposed today, would provide the longer-term homes to rent many families and older people want. We would warn against making it a statutory requirement to introduce three-year tenancies. Many tenants simply do not want to be tied to a property long term. It is vital that the market is able to provide the flexibility that many need in order to swiftly access new work and educational opportunities.”

The needs of tenants must be addressed alongside landlords

It is important to be aware that not all tenants want three year or longer agreements. For some, the flexibility and freedom associated with renting is hugely important and longer-term agreements would negate some of these benefits. There is no one size fits all solution for the rental market in the United Kingdom, so creating incentives or justifications for a range of agreements is a smart move.

Landlords have been penalised with tax changes and financial measures in recent times, so it is easy to see why tax breaks or incentives for landlords would be welcomed by many in the industry. While each landlord needs to consider what sort of agreement best appeals to them, and which agreement will be most suitable for their likely tenants, it is hoped that renewed focus on rental agreements will create a more effective industry.

If you are looking for assistance in acting as a landlord, please get in touch. I am a highly experienced professional in this sector and I look forward to assisting you any way that I can.