Hamptons International has thrown its weight behind the growing calls from pressure groups and some politicians for there to be longer private sector tenancy durations.
A new report - revealed on Estate Agent Today on Thursday - shows that the UK now has an owner-occupation as low as the United States and lower than some parts of southern Europe, representing a major shift from the glory days' of owner occupation.
Shifting tenure trends mean that private renting is increasingly becoming a longer-term option, not just for singles but for larger households too says Hamptons' head of research, Johnny Morris.
The tools for servicing long-term private renters are only just being developed, and the government policy response so far has mostly been limited to attempts to stimulate institutional investment into a professional rented sector he says.
More choice between standard tenancies for six months, one year and three years, with transparent mechanisms for rental uplift, would add certainty to the sector - for both landlord and tenant.
The report suggests that many buy-to-let investors would like to offer longer tenancies but are restricted by mortgage lending conditions.
Hamptons also wants the Built To rent institutional investment sector to be bolstered by local authorities being encouraged to be more flexible with public land disposals. More flexible S106 agreements and conditions specifying schemes must be used for private rent would also be important tools that could incentivise developers into BTR.
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Comments
It may be ok for 'high end letting agents' to have longer tenancies as their tenants probably pay the rent on time and look after the properties.
In my experience there is nothing wrong with 6 month tenancies that automatically revert to a periodic tenancy after 6 months. I have five properties and all of my tenants have been in at least 3 years but should circumstances change for either myself or the tenants there is a quick and easy way out.
I would also suggest that most buy to let investors in the real world do not want longer term tenancies for the reasons mentioned above.