Did you know that some of our European neighbours have longer term tenancies than here in the UK?
Well, France for example, the longer term tenancy is a well proven and widely used option for tenants.
Now there have been increasing demands in the UK too for the introduction of more long term tenancy agreements which are commonplace elsewhere in Europe.
Mike Goddard, the chief executive of Belvoir (UK letting agent), the UK’s largest specialist agency was explaining on the BBC2 Money Programme that how tenants and landlords could benefit from the security of long-term tenure.
I am sure that most landlords and maybe even tenants would welcome this as long as the right termination notice periods were in place.
The Money Programme forecasts that by 2010 around two million people could end up in negative equity due to variety of reasons like falling prices, lower mortgage approval rates and the fact that number of houses sold is at a 30 year low.
Mike Goddard went on to say that he is now seeing a fundamental shift in the attitudes of people towards from ownership towards renting. Being a tenant is no longer a stigma and neither is renting looked down upon.
Moreover tenants always want increased security of tenure, which unfortunately is not something easily available within the current Housing Act. However, he predicts that the UK would gradually move towards a scenario where long term tenancies would be a norm.
The Money Programme cited France as an example where three year leases are common and often increase to nine years. French authorities even provide tax incentives to people renovating property for the rental market.
However unlike here in the UK, tenants in France have more responsibilities for repairs and maintenance. This is a win win situation for both tenants and landlords. Tenants are assured of long term security and landlords know that the property will be kept in a good state of repair and maintenance.
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