Some of the leading members of the build-to-rent sector have signed a pledge offering renters three year tenancies for their new developments.
The pledge was put together by the British Property Federation (BPF) could be the first step into the direction of longer tenancies. Which, according to research, is what especially families are looking for.
A total number of 20 of the sector’s most active investors and developers signed the pledge as a response to the Government’s recently published Housing White Paper. In the paper, Housing Minister Garvin Barwell explicitly asks for this new generation of purpose built, professionally managed rented homes. They are meant to offer family friendly, long-term tenancies to create more stability for those renting their home.
The BPF’s pledge is basically a demonstration of the sector’s commitment to work with the Government to create something more enjoyable for every tenant.
The pledge says:
“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. To further assist customers with their budgeting, we pledge to review rents no more frequently than once a year or at the end of the initial term, and to set out clearly at the start of the tenancy the basis on which rents will be reviewed. Such tenancies will allow the tenant to break, after a short period of notice.”
Housing Minister, Barwell, welcomed the pledge saying that the intention of the Housing White Paper was to create a bigger, better private rented sector for both the tenant and the landlord.
He continued in stating that “it’s great news that British Property Federation members have pledged to offer family-friendly three-year tenancies for renters in build to rent properties.”
“This Government has already helped deliver more than 10,000 purpose build private rented homes since 2012. This important move gives additional security to those tenants and their families, as well as encouraging change in the wider market.”