Government reforms to support long term renters.
With 37% of the Private Rented Sector (PRS) currently made up of families, the government has been under pressure to introduce new initiatives to support the complex needs of this market.
Long term rental agreements ensuring stability and security for families with children are one way the government plans to tackle the issue. A “built to rent” initiative was also included in the whitepaper which would see purpose built properties with 3 year ‘super tenancies’ developed to allow families to maintain school paces and give security of tenancy for long term renters.
In addition to these new initiatives the government plan to further crack down on rogue landlords who fail to maintain safety standards. New measures will see stricter penalties and monitoring for those who do not keep their properties up to standard. Talk of reforming the licencing for multiple occupancy houses has also been included within the whitepaper. Currently dwellings with five or more occupants are licenced, but this may be expanded to include smaller properties with multiple occupants in situ.
This news will be welcomed by agents and landlords who already obey the law and provide quality properties. For those who are looking at investing long term, the news of encouraging longer term tenancies will be very advantageous as long as regular rent reviews play their part in maximising rental yield.
If you are looking to dip your toe in a buy to let or looking to expand your portfolio and would like some advice then please contact Laura Fiddes-Baron on 0121 445 7410 or email firstname.lastname@example.org.
To download and read the full white paper click here