Longer tenancies 'may become the norm'
2nd Jul 2012
There is pressure for longer tenancies to become the norm at the moment, both in terms of security of tenure and because renting is very much an acceptable way of living now, one expert has asserted.
Mark Hayward, chairman of the National Federation of Property Professionals (NFOPP), said that if the private rented sector is ever going to attract significant corporate investment, then investors are going to have to see longer-term tenancies in place.
This will protect their returns and investment because, at the moment, there could be a void period as frequently as every six months, he suggested.
"Also, if the tenant has got a secured tenancy for a period of time - we are talking years - then they are far more likely to take care of that property and invest in it because they are going to reap the benefits from that investment," Mr Hayward said.
Current figures are showing that somewhere between 12 and 14 per cent of all households are rented, which is going to rise to at least 20 per cent by the year 2020, the expert predicted.
"It is going to be a growing part of the household profile," the NFOPP chairman estimated.
Posted by Staff Writer: Frances McDonald
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