If the Government wanted to go further to incentivise longer-term tenancies, Onward argues that the “carrot” of tax reliefs could be complemented with the “stick” of conditions on other allowances, including Wear and Tear Allowance, to mean that new landlords could only claim if they offer tenancy agreements of 3 years or more.
This would act as a further incentive for landlords entering the market to offer 3 year tenancies. The changes could be introduced alongside or instead of the Government’s proposed introduction of fixed 3-year tenancies for everyone.
- The private rented sector has doubled over the past 15 years, and more than 20% of households, representing 4.7 million households, are now rented privately.
- The average length of residence in the private rented sector is 3.9 years. In 2016-17, 51% of renters had lived in private rented accommodation for more than 5 years, compared to 15% in 2008-09.
- These renting households pay a greater proportion of their living costs towards rent per month, stay in rented accommodation for longer, and do so with more children, than any generation before them. Unsurprisingly, the vast majority want to own: nine in ten people prefer home ownership over renting.
Will Tanner, Director of Onward, said: