And here’s the danger.
And the current way of operating is not just failing renters, it is also failing landlords. There is compelling evidence that landlords can make a better return through a model that encourages long-termism rather than the short-term market that currently operates. A recent report carried out by Jones Lang LaSalle shows that rental indexing would enhance landlords’ returns, by keeping rents in line with inflation, and the longer tenures would reduce void periods and cut out letting agents’ fees.
That’s all true. And it might indeed make a better market from the landlord’s point of view. However, it does depend upon what rights of tenancy the tenants get. I certainly would have no problem with the idea of 5 year tenancies. But we’d need to know two things:
1) What is the notice required? Is it, for example, once you’ve signed the tenancy for 5 years then the landlord cannot ask them to move out with two or three month’s notice? If the building (or flat) is sold are they a sitting tenant? Or can the tenancy be voided in that instance?
2) What’s the process about non-payment of rent? Does the tenancy continue if the rent ain’t paid? Or does that create a break and it’s easy to get rid of non-paying tenants?
If anything like the past tenants’ rights are brought into being then the changes will lead to many fewer people being willing to rent out property.
A, say, 5 year tenancy agreement ain’t a problem. It’s all of the other things that surround it which could be. What are the details Jack?