Government to drop plans for regulated family tenancies


By Richard Walford

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.

The government has scrapped plans to guarantee three-year tenancies for renters, according to reports. According to an article in The Sun, the Treasury has opposed the move – which had been backed by secretary of state for housing, communities and local government James Brokenshire– due to fears it could dampen property investment. The article also said that Theresa May’s team wanted to make three year tenancies voluntary, rather than mandatory, for landlords because they believed a mandatory system would be defeated by MPs in the House of Commons.
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