Leeds BS scraps maximum tenancy period on buy to let

Leeds previously imposed a 12-month limit on buy-to-let mortgages but scrapped the criteria in favour of an open ended tenancy.

The lender said it wanted to help both longer-term tenants and its buy-to-let landlord clients by offering more flexible terms.

Chief commercial officer Richard Fearon said: “This is a good example of our strategy of supporting borrowers who are not well served by the market.

“By demonstrating flexibility and not imposing a maximum tenancy period we are helping to support our buy-to-let borrowers.”

Leeds followed a number of other lenders who already settled on longer tenancies, mostly around the three-year mark.

Homeownership across England saw its sharpest fall since the early 2000s, according to research out in early August, with English cities plunging to their lowest levels in 30 years.

Think tank the Resolution Foundation said homeownership had peaked at 71% in 2003, but has since fallen steadily by 8%.

At the same time, the number of private renters almost doubled from 11% in 2003, to 19% in 2015.

Broker L & C Mortgages said there was a problem with more people renting for longer who found they had little security due to the short tenancy periods.

Associate communications director David Hollingsworth said: “Leeds Building Society’s removal of the maximum tenancy period will help increase choice for landlords and their tenants, both of whom may prefer a longer-term tenancy agreement to be in place.”