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Proposed tax incentives for landlords who offer longer tenancies

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LandlordToday publication reports that in its consultation launched yesterday (2nd July), the government is proposing a number of options to implement a three-year tenancy model. These new options are being considered in order to address the need for longer tenancies from the increasing numbers of families and older people in the private rental sector.

One of these options proposes ‘financial incentives’ as called for by the Residential Landlords Association (RLA), which the government argues “could be quicker to implement” then mandatory three-year agreements.

Policy director David Smith for the RLA, said: “With landlords having faced a barrage of tax increases we believe that smart taxation, such as that being proposed today, would provide the longer term homes to rent many families and older people want.

“We would warn against making it a statutory requirement to introduce three-year tenancies. Many tenants simply do not want to be tied to a property long term. It is vital that the market is able to provide the flexibility that many need in order to swiftly access new work and educational opportunities.”

What do landlords think?

In another article, LandlordToday reports that many landlords may react negatively to the proposals that will give tenants a minimum three-year contract. However, residential landlord Neil Young, CEO of Get Living, believes that any plan to impose minimum terms to rental agreements of three-years would benefit tenants seeking security of tenure, as well as landlords looking for a stable rental income.