Assured Tenancy - Are there any?

Firsttimebuyer_4

We are currently tenants who just got kicked out of our rental property. We renewed our AST (Assured Shorthold) contract in June and the landlord used the 6 months "get out clause" as he is going to rent it out to some friends instead. Great!!

We are now living with the in-laws until we find a place we like. We are planning on having children at some point in the near future and there is no way we are buying a house in this market so we are looking at renting.

But where do you find landlords who are doing long term Assured Tenancies (instead of Assured Shorthold Tenancies). We cannot risk having another AST contract and being kicked out after 6 months, or whenever the landlord wants to rent it out to friends!!

We are looking for a way to rent a house long term (at least 3 years). That way we are secure and don't have to worry that the landlord suddenly wants to kick us out.

How do we go about negotiating or finding Assured Tenancy properties? Doesn't look like they exist at all.

sdooley

The problem is most landlords have borrowed to buy their let properties and they will not be permitted by the bank to let on anything other than ASTs. However if you sign up for a longer period AST (e.g. 2-3 years) you might get a deal on rent and you will at least have some security. But obviously you are then tied in for that time.

Landlord is unlikely to sign up for a longer rental unless he has a largeish number of properties. So you are looking at a rental company or someone with a large portfolio (actually sometimes the better landlords).

Premier_2

You'd have difficulty finding any private LL who would be willing to issue you an assured tenancy. Why should they take the risk when they can let under as assured shorthold tenancy agreement?

Furthermore, most if not all BTL mortgages make is requirement that the property is only let under an ASTA.

An ASTA can be for up to 7 years, but again many BTL mortgages restrict the fixed term to 12 months maximum.

Your best bet is to find a private LL who has been letting properties for some time, and who has no intention of evicting a good tenant - but they will still let under an ASTA (typically with a 6 or possibly 12 month fixed term) incase that good tenant doesn't remain as good as they first thought.

Fred1_2

I very much doubt that you will find any Assured Tenancies anymore. However an AST doesn't have to be actually short term. There is no upper limit on the time period, however an AST over 3 years needs to be drawn up as a deed by a solicitor, so 3 years is a de facto maximum for most landlords who don't want to pay solicitors fees.

I'm thinking of starting to offer my tenants 3 year agreements, with an initial break clause at 6 months for new tenants; but I need to do more research on this.

Firsttimebuyer_4

Its the break clause that bothers me and many of my friends as well.... The fact that the landlord can evict us at any time after 6 months. This gives me no security whatsoever.

Many of my colleagues at work are from mainland Europe, where renting is more common than owning house. France in particular is very good at rental agreements. Basically, most people rent, and you cannot kick your tenants out unless he doesn't pay, or the contract period has rented. (or they trash the house). they are even allowed to decorate the house to their liking.

To me the whole rental market in the UK is geared up towards the landlords with no real security for the tenants. (I'm not talking about deposits, but knowing that I can live in the house without the fear of a letter coming through the door telling me I have to leave in 2 months)

N79

Sorry, as well as all the above restrictions (insurance is potentially another) under an AT it is almost impossible to get rid of annoying but not terrible Ts (always pay rent late, unreasonable demands). Other problem is maintaining a market rent which is almost impossible.

An AT can halve the value of a property as it may not be possible to obtain vacant possession.

I don't think you will find a non social LL willing to go down this route.

Longer fixed term ASTs are available but not common. I will issue a 3 year AST but only to Ts who are renewing and have had a spotless history in their previous tenancy. Again the risks are higher and there is no reward - some people (see sdooley above) even think that a lower price should be tied to this higher risk!

Finally, I have been advised that ASTs of longer than 3 years can not be executed as a simple contract but, to be honest, I did not understand my solicitor's explaination and could not be bothered to invest the energy in clarifying it. I just mention this if you want to go down the longer AST route.

N79

Firsttimebuyer wrote: »

Many of my colleagues at work are from mainland Europe, where renting is more common than owning house. France in particular is very good at rental agreements. Basically, most people rent, and you cannot kick your tenants out unless he doesn't pay, or the contract period has rented. (or they trash the house). they are even allowed to decorate the house to their liking.

To me the whole rental market in the UK is geared up towards the landlords with no real security for the tenants. (I'm not talking about deposits, but knowing that I can live in the house without the fear of a letter coming through the door telling me I have to leave in 2 months)

I will always respond to posts that imply that the situation in the rest of Europe is a panacea. You must understand that in the UK all repairing obligations lie with the LL. In Europe some/most or all repairing obiligations lie with the T. Many countries do not have a fair wear and tear clause. This is the price Ts pay for the long term leases and the ability to redocorate / rebuild the houses.

Firsttimebuyer_4

N79 wrote: »

I will always respond to posts that imply that the situation in the rest of Europe is a panacea. You must understand that in the UK all repairing obligations lie with the LL. In Europe some/most or all repairing obiligations lie with the T. Many countries do not have a fair wear and tear clause. This is the price Ts pay for the long term leases and the ability to redocorate / rebuild the houses.

I understand that. But surely the UK can create similar rental conditions? It's not rocket science and would help the market as a whole (including LL's).

Fred1_2

Firsttimebuyer wrote: »

Its the break clause that bothers me and many of my friends as well.... The fact that the landlord can evict us at any time after 6 months. This gives me no security whatsoever.

I was thinking of a break clause that could only be executied at the 6 month point, if not, the tenant would have security for the rest of the term. Admittedly, I haven't researched this and I don't know how I'd word it - would I have to make my mind up if I wanted them to stay or go after just 4 months for instance. For instance, my last tenant was perfect for the 1st 6 months, months 7,8,9 and 10 she was a PITA, so she had to go.I would have had grounds under Section 8 for a court order for repossession, but a Section 21 notice did the trick - a lot less hassle and expense.To be honest, I hoped the Section 21 would serve as a shot across her bows and get her to pay the rent on time again and stop annoying the neighbours and I told her so. But to no avail

Premier_2

You can word break clauses however you like (subject to the usual notice periods)

Often they are worded to effectively give the same rights to a LL & T as a fixed term of just 6 months.

So why have them, you ask? Well I believe they were an invention of LAs. LAs often charge based on the length (and so value) of the contract. By setting a 12 month contract, the LA gets the percentage of the total 12 months rental agreement, irresepective of the actual amount of time let/rent collected. At the same time the LL & T get the ability to end the contract anytime after 6 months which they may want.

It shouldn't be too difficult to find a LL happy to accept a 12 month fixed term without any break clause - these are especially common in student lets for obvious reasons.


Edit: To correct my earlier post, it does appear as both Fred1 & N79 say that an ASTA can be for any fixed period, but ones over 3 years need to be executed as a deed, and those over 7 years registered with the Land Registry. It appears registration with LR is the responsibility of the tenant.

mlz1413

OP when you see your next rental property ask the LA or LL 'is this property for long term rent?'

Many LL would love to know that the tenant wants to stay long term rather than constantly advertising and finding new tenants, but as said above the contracts are dictated by law and mortgagers. So the best way is to find out is why the LL is letting - ie if they are away for a year, gone to live with a partner, couldn't sell so renting you probably don't want these properties as ultimately the LL will want it back when they are ready.

As said before if the property is owned by a LL who rents for a business then it is unlikely they will get rid of a good tenant.