The private rented sector has almost doubled in size over the last 10 years. Assured Shorthold Tenancies, or ASTs, are the most common form of tenancy in the private rented sector, and 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, and is consulting on making changes to the AST regime. 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 have passed. Thereafter, the tenant would be able to end the AST at any time on giving two months' notice.
This kind of arrangement is already common in large purpose 'build-to-rent' developments, such as the East Village in London. However, it remains to be seen how private landlords would respond to the introduction of 3 year tenancies. The Government's consultation closes on 26 August 2018.
Meanwhile, the Law Commission has recently announced proposals to improve the process by which leaseholders can buy the freehold of their homes, known as enfranchisement. The current process is, according to the Law Commission, complex, expensive and stressful. Its proposals include:
The Law Commission will publish its consultation paper in September 2018.