Date Published 11 May 2017
The leading members of the UK Build to Rent sector recently signed a pledge to offer 3 year tenancies in their new developments.
Created by the British Property Federation, this pledge looks to help with the demand for long term tenancies from prospective tenants, families in particular, within the private rented sector.
The pledge was signed by 20 of the most active investors and developers in the Build to Rent sector and is intended as a response to the Government's recent Housing White Paper in which the Housing Minister Gavin Barwell asks for this new generation of purpose built, professionally managed rented homes to offer stable and family suitable tenancies.
The pledge from the British Property Foundation reads:
'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.'
Director of Real Estate Policy at the British Property Federation, Ian Fletcher, commented on the state of the build to rent sector and the hopes of making three-year family friendly tenancies the standard. Fletcher said 'The build to rent sector welcomes government's multi-tenure ambitions for the housing market, as outlined in the recent Housing White Paper, and this pledge underlines one of the many benefits of the sector to government and the sector's customers. While many build to rent providers already offer longer tenancies, our aim is that three-year tenancies become a trademark of the sector.'
Housing Minister, Barwell spoke on how this a great step in the right direction, he said '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.'
Barwell went on to say '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.'