You are here: Home - Mortgages - First Time Buyer - News -

More certainty for renters under new govt plans

0
Written by: Paloma Kubiak
03/07/2018
Longer tenancies are set to be introduced under new plans, which will give renters more security.

Housing secretary James Brokenshire said the government was consulting on a new longer tenancy model of a minimum of three years, with a six month break clause to allow tenants and landlords to exit the agreement early if needed.

He said the government wants to make renting “more secure” as families, vulnerable tenants and older people who rent face the uncertainty of suddenly being forced to move or evicted.

According to government data, people stay in their rented homes for an average of nearly four years. But despite this, 81% of rental contracts are assured short-hold tenancies with a minimum fixed term of just six or 12 months.

Brokenshire 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.

“That’s why I am determined to act, bringing in longer tenancies which will bring benefits to tenants and landlords alike.”

‘Abusive practices in the leasehold market’

The government also announced proposals to tackle “abusive practices” in the leasehold housing market.

Such practices include costs rising without extra services, and unfair terms meaning people are put off from buying new build homes.

Brokenshire said legislation to ban the unjustified use of leaseholds on new homes will be “brought forward at the earliest opportunity”.

And for flats, he said that in the future, ground rents for long leases will be limited to “a peppercorn rate”.

Any new government funding scheme will contain the condition that the money can’t support the unjustified use of leasehold for new houses.

Both proposals apply to England only.

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

ISAs: your back-to-basics guide for 2018/19

Here’s everything you need to know to make the most of your unused ISA allowance ahead of the 5 April deadli...

A guide to Sharia savings accounts

A number of Sharia savings products have upped their game in recent months, beating more familiar competitors ...

Five ways to get on the property ladder without the Bank of Mum and Dad

A report suggests the Bank of Mum and Dad is running low on funds. Fortunately, there are other options for st...

What will happen if rates change

How your finances will be impacted by a rise in interest rates.

Regular Savings Calculator

Small regular contributions can build up nicely over time.

Online Savings Calculator

Work out how your online savings can build over time.

Having a baby and your finances: seven top tips

We’re guessing the Duchess of Cambridge won’t be fretting about maternity pay or whether she’ll still be...

Protecting family wealth: 10 tips for cutting inheritance tax

Inheritance tax - sometimes known as 'death tax' - can cause even more heartache for bereaved families. But th...

Travel insurance: Five tips to ensure a successful claim

Ahead of your summer holiday, it’s important to make sure you have the right level of travel cover or you co...

Money Tips of the Week

Read previous post:
Immediate Needs Care Annuities: what you need to know

Going into care is often a worrying and stressful time for all involved. There's the emotional stress for the individual...

Close