In response to a government request made in February’s Housing White Paper, 20 build-to-rent investors and developers have signed a pledge to offer longer tenancies for those who want longer-term stability when renting.
Ian Fletcher, BPF director of real estate policy, said: “The build to rent sector welcomes government’s multi-tenure ambitions for the housing market, as outlined in the recent Housing White Paper, and this pledge underlines one of the many benefits of the sector to government and the sector’s customers.”
He added: “While many build to rent providers already offer longer tenancies, our aim is that three-year tenancies become a trademark of the sector.”
Signatories include M&G Real Estate, Essential Living and Grainger.
The pledge states: “We, the undersigned, therefore pledge to offer our customers the option of a three-year tenancy in any of our new build to rent buildings. Our customers will not be under any compulsion to take up this three-year tenancy option, and can still opt for shorter terms.”
The firms have also pledged not to review rents more frequently than once a year or at the end of the initial term, and to set out clearly at the start of the tenancy the basis on which rents will be reviewed. Tenants will be allowed to break, after a short period of notice.
Housing and planning minister Gavin Barwell said: “Our Housing White Paper sets out plans to create a bigger, better private rental sector for tenants and landlords, and to give renters a fairer deal.”
He added: “This important move gives additional security to those tenants and their families, as well as encouraging change in the wider market.”