One of the lettings sector’s biggest lenders, Santander, is allowing its buy to let landlord borrowers to offer assured shorthold tenancies of 36 months, up from 12 months.
This is in line with increasing pressure from government and other institutions to encourage more flexibility in the sector.
The bank’s announcement is intended to give tenants added security by allowing rents to stay at the agreed level for longer, enabling them to budget on a more long-term basis.
“In areas such as London and the south-east, property prices continue to rise and outpace wage growth significantly. Many renters aspire to take a step on the property ladder, but are resigned to ploughing their money in to rent, unable to save for a deposit” says a Santander spokesman.
“We hope these changes in policy will go some way to helping people budget and potentially save towards a deposit for their own property, supporting the first-time buyer market and enabling social mobility, while also helping to prevent the risk of homelessness. Meanwhile, it also ensures landlords have a guaranteed rental income and don't have to worry about loss of income with an empty property" he continues.