Three-year tenancies could be introduced in a bid to give renters more long-term security, the Government has announced.
Secretary of State for Communities James Brokenshire is proposing the introduction of a minimum three-year lease for housing rentals, which would include a six-month break clause at which the contract can be ended.
According to Government data, people stay in their rented homes for an average of nearly four years, but 81% of rental contracts tend to be just six or 12 months long.
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How would the new scheme work?
The Government has today launched an eight-week consultation on proposals to give renters more security, so it’s not clear what the new rules would be or when they may be in place.
It has said renters would be able to leave before the end of the three-year period, but it has not given further details of how this could work and whether there would be any fees to do so.
Landlords, tenants and related organisations will be able to comment on the proposals, which may need primary legislation to make them law.
What does the Government say?
Secretary of State for Communities James Brokenshire MP said:
“It is deeply unfair when renters are forced to uproot their lives or find new schools for their children at short notice due to the terms of their rental contract.
“Being able to call your rental property your home is vital to putting down roots and building stronger communities.
“Thats why I am determined to act, bringing in longer tenancies which will bring benefits to tenants and landlords alike.”