New model tenancy agreement launched

Housing minister Brandon Lewis has unveiled plans to introduce a model tenancy agreement which would encourage landlords to offer longer tenancies.

Speaking at the RESI conference in Newport, Lewis said longer tenancies would save landlords from spending money on letting agents.

“Today we are publishing our own tenancy agreement which tenants can use to ask for longer tenancies from their landlord if they want to,” he said, “These agreements will also benefit landlords. It allows them to avoid leaving their properties empty and pay fees to lettings agents for finding new tenants as often. It is the complete opposite of what the opposition wants… We want to work with the industry and not against it.”

You can view the model tenancy agreement here.

The agreement also contains guidance on its use and clauses. It has been designed by the government for use when the landlord and tenant are entering into a shorthold assured tenancy agreement in the private rented sector.

The Government says it will be particularly relevant for use when the parties are entering into a longer term tenancy of two or more years. It, therefore, contains provisions relating to rent reviews and those which enable the landlord or the tenant to end the tenancy during the fixed term if their circumstances change.

The British Property Federation (BPF) welcomed the model tenancy agreement. Ian Fletcher, director of policy at the BPF, said: "The BPF welcomes the model tenancy agreement announced by Brandon Lewis this morning, and the fact that it is ‎promoting voluntarily longer tenancies. A number of companies are already offering long term tenancies, but for those who do not and who would like to introduce them, this will be a useful guide.
 
"If long term tenancies are to work, it is important to not be too prescriptive in deciding on rent setting mechanisms, and we are pleased that the agreement has allowed for some flexibility in this respect."

Alex Hilton of Generation Rent said: “This is a valuable document that will help landlords treat their tenants better and improve the relationship between the two. But until it starts being stocked in WH Smith, it will not be widely adopted by landlords, and the majority of renters will continue to live with inadequate tenancy agreements.”