Eric Pickles' new proposals re: longer tenancy agreements

[fl0wer]

Get ready!

http://www.theguardian.com/money/2013/oct/01/landlords-pickle-tenants-charter

[Saffron]

That's interesting, but what does it mean in reality? Home owners will have to renegotiate their mortgages, then pass on the expense to their renters who are easy targets with their new longer contracts? Please tell me I'm being pessimistic. As long as London has a rising sellers' market, it's hard to see how this is anything more than a cup of coffee on an ice berg. Though if it helps even a minority of renters it must be a good thing?

[Loz]

What would a tenant do if they signed a three-year contract and then wanted to move, say for a new and better job?

[Saffron]

Same thing you do if you're currently on a 1-year contract?

All the contracts I've seen recently have had a 2 month notice clause. So, if you have to vacate the residence prior to contract's end, you must give no less than 2 months notice to the landlord, from the 1st of the month or whenever your rent cycle starts.

And if your landlord will not be renewing your contract at the end of one year (or 5 years, etc), they must give you notice at least 2 months prior to contract's end.

Apologies, I've probably not worded that very accurately, but maybe someone else can describe the legalese better? Hope I got the gist of it?

[Loz]

So, what I think you are saying is that the tenant would also be locked into the contract for three years?

I can see this going through with most people wanting 12 month break cause options, which would make the whole exercise useless. Most landlords (unless they are renting out their own home temporarily) would love three year tenancies, especially if there are annual rent reviews.