Changes to Tenancies to make them Longer
In most of Europe there are longer tenancies provided to residential tenants. The United Kingdom has always had shorter tenancy agreements, most often being less than one year. However, the United Kingdom asked for a round table discussion to decide if there is a need for a longer standard tenancy contract. In the last three years more and more residents of the United Kingdom have moved into rental accommodations.
This is a direct result of the subprime mortgage crisis that turned into a global credit crunch and recession. It has meant a great deal of foreclosures have occurred in the last few years, which is why there are more tenants paying rent than in previous years. Mike Fitzgerald is a marketing director for Emba. He stated younger people have a “rent mentality.” In other words they are not looking to buy a house, but to find a place they can affordably rent.
The younger generation is beginning to feel they do not need to buy a house. Instead they feel renting is good enough to fit their lifestyle. A mortgage director, Robert Sinclair stated the UK should become more like Europe with longer tenancy terms.
A longer tenancy would mean the tenants have more control over the property. For example, a year is not really a worthy time to make improvements to a property, whereas a tenure tenancy would mean there is a point to upgrading a few things. The upgrades would have to be approved by the landlord, but the point is if there was a tenure it would be more reasonable to convince landlords the upgrades are needed. Short term contracts also make it harder to get rid of bad tenants who have breached their contract. Most feel longer contracts are needed and that they will come about eventually.
In most of Europe there are longer tenancies provided to residential tenants. The United Kingdom has always had shorter tenancy agreements, most often being less than one year. However, the United Kingdom asked for a round table discussion to decide if there is a need for a longer standard tenancy contract. In the last three years more and more residents of the United Kingdom have moved into rental accommodations.
This is a direct result of the subprime mortgage crisis that turned into a global credit crunch and recession. It has meant a great deal of foreclosures have occurred in the last few years, which is why there are more tenants paying rent than in previous years. Mike Fitzgerald is a marketing director for Emba. He stated younger people have a “rent mentality.” In other words they are not looking to buy a house, but to find a place they can affordably rent.
The younger generation is beginning to feel they do not need to buy a house. Instead they feel renting is good enough to fit their lifestyle. A mortgage director, Robert Sinclair stated the UK should become more like Europe with longer tenancy terms.
A longer tenancy would mean the tenants have more control over the property. For example, a year is not really a worthy time to make improvements to a property, whereas a tenure tenancy would mean there is a point to upgrading a few things. The upgrades would have to be approved by the landlord, but the point is if there was a tenure it would be more reasonable to convince landlords the upgrades are needed. Short term contracts also make it harder to get rid of bad tenants who have breached their contract. Most feel longer contracts are needed and that they will come about eventually.
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