October 27, 2011
Buy To Let Landlords Need To Create Flexible ASTs
If theprivate rental market is to provide an attractive alternative to home ownership in the UK, a full range of tenancy agreements must be available says new research published by LSE (London School of Economics) London.
‘Towards a sustainable private rented sector’ compares the UK private rental market with those in 15 other industrialised nations. It found that security of tenure is a key factor in countries, such as Germany, where private renting is seen as a practical choice, even for middle-income families.
Kath Scanlon, research fellow at LSE London said: “Households are unlikely to choose a privately-rented house or flat as a long-term family home or a place to live in retirement if they are faced with the uncertainty of a short-term lease and aware they could be asked to leave at short notice, at any time.”
Assured tenancies which allow tenants to stay in a property indefinitely do exist in the UK but are very little used. This is because buy to let mortgage lenders often require that properties be let on shorthold (six month) tenancies, and manylandlords want the flexibility to sell a property with vacant possession if house prices go up.
