Periodic contracts – financial nightmare for landlords?

Periodic contracts – financial nightmare for landlords?

9:01 AM, 16th January 2025, About 3 hours ago 3

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With the new Renters Reform Bill are you concerned about the move to periodic contracts?

We bought our flat in 2007, just before the crash. It is still in negative equity and will remain so for the foreseeable future. We bought a buy to let with the aim of topping up our pension. It has been and continues to be a financial drain and we are in a negative situation every month due to the high interest rates.

We are now retired, and due to the slow market, we have been unable to sell our flat. Periodic contracts are a huge worry for us and will cause us extra burden financially. As we all know the cost of finding new tenants and drawing up contracts is expensive.

A 12-month fixed-term contract in the first year gives us peace of mind. The move to periodic is so restrictive and could incur extra expense.

We have always been very caring landlords and the happiness of our tenants is a priority. I always reply and sort out any problems immediately. My husband now has dementia, and we need to sell but can’t. The RRB is so restrictive, stating we can’t sell in the first year.

All we want is for fixed term contracts to be allowed in the first year of tenancy and then change to AST as we have always had.

How can we make our voices heard? Do other landlords agree?

What other investment is there where so many restrictions are placed on an asset that you own?

Landlords are constantly vilified but it is proven that so many landlords are like us. It’s a nightmare

Periodic contracts are a huge worry to us.

Karen


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Comments

Cider Drinker

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9:54 AM, 16th January 2025, About 2 hours ago

There will be a risk that tenants will leave early. I assess the risk as having a low likelihood and a low impact.

John Adair

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11:10 AM, 16th January 2025, About An hour ago

Agree with Cider Drinker. I think problem will be properties that only available for 6 / 12 months due to folk working away and similar situations - how do they get back when return ?

Paul Essex

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11:25 AM, 16th January 2025, About 47 minutes ago

The short stay risk will probably only bite landlords with properties in holiday hot spots. I can unfortunately see this as the latest guru sales pitch, rent for the summer season re-let at a profit and walk away in the autumn.

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