Long-term tenancy agreements can benefit both tenants and landlords

Posted under General by Jermaine

There is growing demand for introduction of long-term tenancy agreements in the UK, a practice which is prevalent in Europe.

Rental market is highly developed in France and long-term agreements are well established option for tenants who are more interested in living their lives with better financial planning.

According to Mike Goddard, chief executive of the UK’s renowned letting agency, Belvoir, landlords and tenants could derive benefit from security of long-term agreements, by recognising that renting could be a sensible lifestyle and a financially viable solution.

It is predicted that 2 million people will slip into negative equity by 2010 and more people than ever will become tenants and landlords. This is evident from data which indicates that mortgage approvals have gone down by 95%, house prices fell by £15,000 while sales of houses touched a 30-year low.

Mike Goddard believes that there is total shift in public perception that renting was second rate option. It is now being looked at as better option in the prevailing economic conditions. He added that more tenants expect longer tenure of secured tenancy which is not available under existing Housing Act in the UK.

Goddard is confident that the UK would be moving in the same direction and short-term tenancy would not remain the only option. According to him long-term agreements would be easily available. Goddard believes that if tenants accept responsibility for maintenance and repair, it could be an incentive for landlords for long-term tenancy.

There is growing demand for introduction of long-term tenancy agreements in the UK, a practice which is prevalent in Europe.

Rental market is highly developed in France and long-term agreements are well established option for tenants who are more interested in living their lives with better financial planning.

According to Mike Goddard, chief executive of the UK’s renowned letting agency, Belvoir, landlords and tenants could derive benefit from security of long-term agreements, by recognising that renting could be a sensible lifestyle and a financially viable solution.

It is predicted that 2 million people would slip into negative equity by 2010 and more people than ever would becoming tenants and landlords. This is evident from data which indicates that mortgage approvals have gone down by 95%, house prices fell by £15,000 while sales of houses touched 30-year low.

Mike Goddard believes that there is total shift in public perception that renting was second rate option. It is now being looked at as better option in the prevailing economic conditions. He added that more tenants expect longer tenure of secured tenancy which is not available under existing Housing Act in the UK.

Goddard is confident that the UK would be moving in the same direction and short-term tenancy would not remain the only option. According to him long-term agreements would be easily available. Goddard believes that if tenants accept responsibility for maintenance and repair, it could be an incentive for landlords for long-term tenancy.