At a meeting this week with Housing Minister Jacob Young MP, who has responsibility for the Renters (Reform) Bill, Propertymark’s CEO and head of policy and campaigns outlined the importance of retaining fixed term tenancies.
Under the Renters (Reform) Bill, fixed term tenancies, including assured and assured shorthold tenancies (ASTs), will be abolished and replaced by periodic tenancies with a monthly rental period.
Propertymark has previously argued that removing fixed term tenancies as an option will provide less security for tenants and reduce flexibility in the private rented sector (PRS).
A fixed-term allows security of tenure for the tenant and a guarantee of rent payments for the landlord.
For tenants with low income or poor credit history, the fixed term allows a guarantor to be confident about the length of time they are signing up to support them, a point the Minister highlighted he wanted to investigate.
Furthermore, the student rental market relies on fixed-term agreements to facilitate the availability of properties in line with the academic year.
At the meeting, the professional body highlighted the need for more mandatory grounds, including breach of tenancy, deterioration of property and acquiring a tenancy by using a false statement as well as ensuring that any new requirements for landlords to belong to a redress scheme align with existing redress scheme requirements for letting and property agents.
Nathan Emerson, Propertymark CEO, said: “We had a very positive meeting with the Housing Minister who is absolutely engaging on all aspects of this important piece of legislation.
“We know from member agents the importance of retaining fixed term tenancies as well as ensuring the reformed grounds for possession are robust and fit for purpose.
“The road map for regulation and the landscape for how landlord redress will work in practice are also key concerns that we raised with the Minister on behalf of members.
“We look forward to continuing to work with the UK Government to ensure the Renters (Reform) Bill delivers its aims, we reduce unintended consequences, and it works for everyone.”
