Assured Shorthold Tenancies (ASTs) are the most common form of tenancy in the private sector. The majority of tenants have terms lasting between 6 months, the statutory minimum, and 12 months.
The government believes that longer tenancies would provide security and stability for both landlords and tenants. It proposes to introduce a minimum three-year term for ASTs, with both the landlord and tenant having the option to break the AST after the first six months. Thereafter, the tenant would be able to end the AST at any time on giving two months' notice. This is meant to alleviate perceived uncertainty for the tenant and the risk of being required to leave their home at short notice.
The proposal of forcing landlords to grant three year tenancies will need to be thought through properly. For professional landlords, it will not be a problem, but for someone who has rented their home out whilst working abroad for a year, it will be.
In addition, there is actually nothing currently preventing ASTs being granted for three years or even longer. The average buy to let landlord wants their properties to be rented out rather than to force good tenants out. Having a longer tenancy would suit many landlords as this would cut down on void periods between tenancies, and the cost and time of finding new tenants on a regular basis.
Tenants quite often appreciate the flexibility of the current AST system and usually have no difficulty in extending their tenancies.
Perhaps this is a case of the government wanting to grab a good headline rather than solve a real problem?
This article first appeared in the Watford Observer.