Do you own a buy-to-let property? There are some proposed new rules
regarding tenancy agreements. Find out more.

Life is set to become a whole lot easier for UK landlords if the
findings of a Law Commission report, currently coming up to final draft
stage, are to be implemented.

If you own a buy-to-let property, or are considering joining the growing
band of landlords, it is important that you’re aware of proposed new
legislation regarding tenancy agreements. These are designed to remove
some of the head-aches associated with the legal aspect regarding rental
agreements.

It appears that there is a steadily growing demand for rental property
with many new investors coming in to the market. This has resulted in an
increasing number of specialized lenders offering comprehensive
buy-to-let mortgage packages. So, there’s a wealth of advice and funding
available should you wish to enter the market, and now it seems as
though the actual rental contracts are set to become a whole lot simpler
too. Many landlords and tenants would agree that this change is long
overdue.

These contracts are legal documents between landlord and tenant and at
present, unbelievably, there are over twenty different types available.
It appears that a great many of them are based on agreements which were
originally brought into force over a century ago, with clauses and
phrases which are totally out-dated and largely irrelevant. However,
they are legal contracts and, as such, can still be used.

The more usual contract currently which is used by the majority of
private landlords is called the “assured shorthold tenancy agreement”.
This has been in use since 1988 and has specific rules with regard to
rental levels, liability for damage, rules regarding pets, parking,
etc., the problem with this agreement is that, whilst it is commonly
used as a basic agreement, landlords have written in an assortment of
terms and conditions and there are now many varying versions of this too.

If the Law Commission’s proposals become law, then the number of these
contracts will be reduced to just two. One will be specifically designed
to be suitable for the requirements of social housing tenants. This will
be referred to as a “secure contract”. The other is relevant for private
landlords and will be known as a “private standard agreement”.

It appears that it won’t be mandatory to replace the old assured
shorthold tenancy with new ones, but it would seem to be sensible to do
so. In the event of any dispute with regards to the tenancy, the courts
would obviously be more in tune with the clear and precise terms of the
new “private standard agreements”. New rules regarding repossession of
the property will come into force too. Whilst at present tenants have
the right to hold the tenancy for six months, the new rules will allow
more flexibility should the landlord be placed in a position where it is
imperative that the property should be placed on the market, for instance.

This “tidying up” will make life a whole lot more simple, both for the
current and prospective landlord and promises to be a real change for
the better.

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