The mortgage works, the buy-to-let arm of mortgage lender Nationwide, is to extend the length of tenancy they will allow on their mortgaged properties to 36 months, up from just 12 months. Nearly every other lender sits at 12 months at present.
Over recent months there has been growing pressure for landlords to offer longer tenancies from Shelter and the London Assembly, which have highlighted their main issue as families with children needing long term security.
TMW managing director Henry Jordan said: “According to Shelter, one in five families now rents rather than owns. Families are more likely to want longer-term tenancies to, for example, ensure continuity of schools, so giving our customers this option will bring greater stability to this growing market segment.”
Campaigner David Lawrenson, who has argued that there is a business case as well as a moral argument for longer tenancies, said he was delighted.
William Taylor of Martin & Co Huddersfield (Huddersfield Letting Agent, Estate Agent and Property Management) said "I think the UK will move more in line with contintental Europe providing longer more secure tenancies, we have long tenancies requested, but obviously can't always cater for this. This is a good move."