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.

Flight cancelled or delayed? Your rights explained

With no sign of the problems in UK aviation easing over the peak summer period, many will worry whether holida...

Rail strikes: Your travel and refund rights

Thousands of railway workers will strike across three days this week, grinding much of the transport system to...

How your monthly bills could rise as the base rate reaches 1.25%

The Bank of England has raised the base rate to 1.25% as predicted – the fifth consecutive rise in just six ...

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.

DIY investors: 10 common mistakes to avoid

For those without the help and experience of an adviser, here are 10 common DIY investor mistakes to avoid.

Mortgage down-valuations: Tips to avoid pulling out of a house sale

Down-valuations are on the rise. So, what does it mean for home buyers, and what can you do?

Five tips for surviving a bear market mauling

The S&P 500 has slipped into bear market territory and for UK investors, the FTSE 250 is also on the edge. Her...

Money Tips of the Week