The Residential Landlords Association is consulting with landlords over its own proposals for long-term tenancies.
The body has also entered discussions with mortgage lenders as to their concerns.
The consultation is after Shelter proposed a new five-year fixed term tenancy for all tenancies in the private rented sector.
Shelter also wants rent increases linked to inflation, with tenants – but not landlords – able to leave the contract at any point with two months’ notice.
The RLA has produced its own model for consultation, and policy director Richard Jones, said: “Whilst Shelter continues to suggest that landlords are actively looking for opportunities to throw their tenants out altogether, the reality is that just 9% of tenancies are ended by a landlord, showing that the majority much prefer to keep tenants on than face an empty property.
“Moreover, with the average length of private tenancies now reaching 20 months, it is clear that the current tenancy model already provides for longer-term tenancies when they are needed for families.
“The RLA is now consulting on proposals that would achieve the right balance of rights between the landlord and tenant while maintaining the confidence of mortgage lenders.
“Shelter’s proposals would not work, not least given that many tenants, especially younger people, such as students or those who are eventually looking to buy a home of their own, seek a short-term tenancy.
“Shelter’s calls for contracts with index linked rent rises would be bad news for families who are presently seeing average market rents increase by less than inflation, especially outside London.
“The best way to prevent rents becoming unaffordable is to support the army of smaller scale landlords to invest in much-needed new property.
“So far we have heard little from Shelter about how this could be achieved. Their plan for longer term tenancies would result in landlords being no longer willing to invest.”
%20-%20IMAGE%20Client%20Accounting%20%E2%80%93%20what%20are%20your%20options.jpg)
Comments
The value in short tenancies for landlords has to do with the way eviction notices and procedures are set up. A one month tenancy allows for a one month section 21 notice so a five year tenancy would effectively remove this quick route for eviction. Before I receive hate mail, no landlord evicts a tenant for fun since empty properties and agency fees add up to a big loss. Speaking for myself, I will put up with a lot from a tenant as long as the rent is paid and the property is not damaged beyond painting, decorating and carpets. If I have a good tenant I just let the tenancy go into rolling mode.
At the moment letting in England and Wales is functioning fairly well. The last time that massive controls were introduced letting became an impossibility so there were no lettings available. Just imagine if that happened now with many people being unable to have a mortgage and landlords did not exist. The councils would have "one hell of a problem" housing the homeless.
It is oh so easy to criticise but sometimes it is just better to leave well alone, warts and all. The caveat I do have to this is that there should be some very heavy legal sanctions against landlords and or their agents who risk other peoples lives.
Are Shelter really a secret corporate organisation that are trying to impose greater burdens on tenants through subterfuge?
1) Rents have often not risen in our area so why force tenants to have to pay increased rents through linking them to ever rising inflation?
2) Tenants often struggle to deal with having to give one month's notice - why would Shelter force them to have to start giving 2 months notice?