Resolution Foundation report backs indeterminate tenancies
Indeterminate tenancies should become the only form of rental contract allowed in England and Wales, a new Resolution Foundation report has argued.
The report, titled A New Generational Contract, makes a range of recommendations aimed at helping shift the balance of wealth between older and younger people, not least in the areas of housing.
It calls for a number of changes to the rental system that would benefit young people, and the length of tenancies is just one of several measures where the report argues for England to come into line with systems already used elsewhere in the UK.
Just as the indeterminate tenancy length is now enshrined in the Scottish system, so the Foundation has made the case for England to oblige landlords to register with their local authority, something currently happening in the rest of the UK.
It also argued for a 'light touch' system of rental stabilisation that pegs rent rises to the Consumer Prices Index measure of inflation for three-year periods, plus the establishment of a housing tribunal system with the power to challenge rent rises and make judgements on possession applications.
These changes to the rental market would sit alongside a series of other proposals designed to make it easier for younger people to get out of renting and onto the housing ladder.
They include the abolition of inheritance tax in favour of a 'lifetime receipts' tax and the scrapping of council tax in favour of a new property tax weighted towards the wealthiest homeowners. These changes would, the report projected, provide £5 billion a year of extra revenue, which could then be used to give every 25-year-old a windfall of £10,000 to spend on major items such as paying for a housing deposit.
Another change would be to allow the mayors of cities and city regions to limit house purchases to UK residents in housing hotspots.
However, the rental sector would also get support from the proposals, with build-to-rent being exempted from stamp duty.
These proposals come just days after the government proposed a list of its own steps aimed at helping tenants through legislation to curb letting fees.