It is unsurprising given the current political climate that the Government is withdrawing its plans for mandatory family tenancies. With no groundswell of tenant appetite the Government has recognised the difficulty and risks of imposing a new form of regulated letting on the residential leasehold market.  

Upsetting the residential investment sector by introducing a new regime and watershed just as PRS and Build to Rent (BTR) schemes are taking off, could dampen enthusiasm in the market for these new investment models. In any event, the Government may seek to avoid criticism for failing to address the plight of unhappy tenant families by pointing to other recent increases that it has made in the regulation of managing agents and  landlords in an effort to improve standards across the sector.