Long-term tenancies will help everyone
It was interesting to see at the height of all the Help to Buy media hoopla recently that the Government was also highlighting the importance of the private rental sector and focusing on areas such as the rights and needs of tenants and how lettings agents conduct themselves.
While hopefully Help to Buy 1 will help grow the housing supply in the UK it’s fair to say that this Coalition Government is relying heavily on the private residential sector to help fill the housing gap that clearly exists. Even with the best will in the world, and all the State support you can shake a stick at, there’s little chance of the new homes shortage being filled any time soon.
Therefore, the private rental sector is vitally important and it is good the Government recognises that not everyone wants, or can, become an owner-occupier but they still need somewhere to live.
The focus on letting agents is to my mind long overdue and, to this day, it seems odd that both letting and estate agents stand outside the regulation that all other property market stakeholders are subject to.
Putting those letting agents who charge exorbitant fees for their ‘services’, yet provide very little in the way of actual service to either landlords or tenants, under the spotlight is a positive and the focus on getting rid of the cowboys in this sector can only be a good thing for all.
With renting become a much longer-term arrangement for many people it is also vital that we, as lenders, explore the ways we can tie in our financing of landlords/investors with the landlord/tenant’s request for longer-term tenancies.
I know that many landlords are keen on longer tenancies particularly when they are dealing with a quality tenant. It makes life easier for all involved and we should certainly look at all the options available to allow landlords to offer this option.
Article courtesy of Mortgage Strategy