Build to rent investors sign pledge for longer tenancies
Key players in the build-to-rent sector have agreed to offer renters the option of three-year leases for their properties in a bid to encourage long-term tenancies. The British Property Federation put together a pledge that has been signed by a number of companies currently working on new developments.
According to the group, it is doing all it can to encourage longer-term tenancies, including having 20 of the most active investors in the sector sign the pledge it put together. Offering tenancies that run for three years or more will provide renters with greater stability and family-friendly properties.
The pledge was put together in response to the Housing White Paper that was released in February, which called on the build-to-rent sector to look at offering longer leases as this is what renters want.
Those investors in the build to rent sector that have signed the pledge are helping to showcase the British Property Federation's commitment to work alongside the government in an effort to improve the experience of renters.
In its pledge, it said: “One of the benefits of the UK’s new build-to-rent sector is its ability to offer longer tenancies to its customers. We, the undersigned, therefore pledge to offer our customers the option of a three-year tenancy in any of our new build-to-rent buildings.
“Our customers will not be under any compulsion to take up this three-year tenancy option, and can still opt for shorter terms."
The pledge also states that rents will not be reviewed more than once a year or at the end of the original tenancy period. Tenants will also have the option to give a short notice period of their intention to leave the property.
Gavin Barwell, housing minister, has welcomed this news saying that the Housing White Paper was designed to improve the private rented sector for all those involved and so this is a step in the right direction.