NEWS

Longer Term Tenancies Consultation

Tax incentives for landlords who offer longer term tenancies are part of the government’s proposals being considered to help tenants put down roots and give landlords longer-term financial security.  Its eight week consultation on implementing a three-year tenancy term, with a 6-month break clause, runs until 26 August 2018.

The report put forward a number of options including introducing financial incentive for landlords in the form of tax relief or cash payments. Any tax incentive would require primary legislation. According to the Residential Landlord Association (RLA) tax relief would encourage 63% of landlords to offer a longer tenancy.

Under the proposed longer term agreement, tenants would be able to leave before the end of the minimum term, but would have greater protection if they wanted to stay for an extended period of time. Consideration will be made for whether there should be any exemptions, such as for student accommodation.

The consultation is seeking the views of landlords, tenants and related organisations about the most effective ways to tackle obstacles to introducing longer tenancies, If you would like to respond please use the following link: https://www.gov.uk/government/consultations/overcoming-the-barriers-to-longer-tenancies-in-the-private-rented-sector

31/07/2018