The Residential Landlords Association (RLA) has hit out at housing
charity, Shelter, for suggesting tenancy agreement laws need to be
revamped. The charity is calling for buy to let rental agreements to
be a fixed five-year term, but the RLA thinks this is grossly unfair
to buy to let landlords. Shelter is also calling for rent rises to be
restricted during the agreement and for tenants to have the power to
break a tenancy agreement with only two months notice.
Why does Shelter want 5 year tenancy agreements?
Shelter is concerned about the effect living in rental accommodation
is having on families with children. They say that forcing landlords
to offer minimum 5-year tenancy agreements will increase stability
for families with kids. However, the RLA says that the reason most
tenancies end early is down to the tenant rather than the landlord.
Striking a balance
The RLA thinks Shelter’s proposals are too one sided in favour of the
tenant, which is unfair on landlords. The charity says that a large
number of tenants don’t want to be tied into long-term tenancy
agreements because they are only renting for the short term. The
worry is that longer fixed tenancies could dissuade new landlords
from investing in buy to let properties, which would put even more
pressure on the housing market.
The RLA is also concerned about Shelter’s proposed plans to fix rents
in line with inflation. They say the majority of landlords rarely
increase their rents every year so indexed linked rents could end up
leaving tenants out of pocket.
