Deal Sourcing

3-year mandatory tenancies – Another blow for landlords?

The government is about to put forward another new law that will once again make them very unpopular with landlords. 

There are currently plans being put forward (currently at the consultation stage) to introduce mandatory 3-year tenancies for all tenants within the private residential sector. 

What this means: Landlords
– Longer tenancy agreements would mean a longer period of time for eviction of troublesome tenants. 

– With this in mind, under the new proposal, there would be a 6-month probationary period where the landlord can request termination of the tenancy agreement and regain the property. 

– Currently, a landlord can serve a section 21 after the probationary period has ended on the property (usually 6 months) and get their property back without giving any reason or going to court. 
However, with a longer tenancy, there would be a longer initial period whereby a section 21 could not be served, meaning a section 8 would need to be served. A section 8 has a lot more technicalities and does have to go through the court system. 

What this means: Tenants
– Good tenants would be guaranteed more stability from their rented property in the long term. 

– Once the 6-month probationary period is up, the tenant is secure within the property for another two and a half years. If however, they want to leave, they can simply cancel the contract, giving a short notice period. 

Do you think longer tenancies are a good or bad idea?

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