Bank extends tenancy contracts to three years amid pressure from tenant group

Sounds like yet another pointless protest designed to garner support for the business (aka ‘charity’).
There’s already a Section 8 Ground that allows a lender to seek possession of a property should the borrower default on the mortgage payments.
If tenants are being asked to leave at the end of their fixed term then either the tenant is not a good tenant or the landlord is selling up. The (extremely valid) reasons why landlords are selling up are well documented.
The Renters (Reform) Bill had proposed to end fix term ASTs and effectively make the tenancies periodic with just 6 months minimum terms (a bit confusing mixing periodic and a minimum term in my opinion).
It is landlords that will decide how long they wish to offer. Not the banks and certainly not the Acorn business. Very few will choose to offer fixed terms of 3 years in my opinion.
I used to offer my tenants fixed term ASTs of up to 3 years. I don’t now. My plan now is to sell unless something changes to make the PRS fairer for landlords. And quickly.
Right now, I think Reform UK are the only Party to offer any hope of improving the housing crisis.

Acorn. Another bunch of multi- membership lefty socialist flash rent a mob who intimidate and threaten staff at letting agency and building society branches.

Due to their actions and that of their comrades Gen Rant and Hell-ter Shelter, property supply is down and rents are up. Well done.

They are the same ones waving their Socialist Worker Party placards and wearing their keffiyeh headscarves when they haven't a clue what they are protesting about.

They should all curl up and expire.

This looks like some progress. However, while there is a shortage of properties, tenants are unlikely to have many offers of longer tenancies. Government actions, such as the Rental Reform Bill generally make matters worse. The Government needs to be much more flexible on tenancy terms. We are likely to continue with our current tenancies of up to 18 months ending on 1st September.

Reply to the comment left by Chris Rattew at 28/05/2024 - 12:43
Chris, what do you believe this is progress towards?

Landlords have always cherished long-term tenants. Long-term tenants are good news.

I’m such a landlord. My tenants don’t often wish to move. One that does wish to downsize has said she only wants me to be her landlord.

Sadly, anti-landlord rhetoric has made it that I don’t wish to continue. I can earn a better return by putting my money into a safe savings accounts where there is no stress and tax returns are easier. My properties will all be sold and families will be evicted. All other properties advertised on RightMove are around 40% more expensive. All that they can afford is a less attractive property with no garden, no pets yet even these properties are snapped up within days of being advertised.

Reply to the comment left by Chris Rattew at 28/05/2024 - 12:43
progress???

Reply to the comment left by Cider Drinker at 28/05/2024 - 12:57
This is progress in that it removes a restriction imposed on landlords by lenders. It is better to have flexibility. It is possible now to offer longer contracts subject to including a clause to keep the lender's right to early termination. However, lenders are now asking for contracts to be between 6 and 12 months, although they have permitted shorter ones. I am favour of a much freer market.

Some lenders have never had a restriction. Mine asked for a copy of the tenancy agreement and were happy with my 3 years AST.

When inflation was out of control, I wished that I had limited the fixed terms to one or two years. As it was, I let the tenants know that their rents would rise significantly when the fixed term ended and they understood. This year I offered one or two years at a fixed rent for the term (with 2 year being around 4% more than one year). They chose the one year option and I plan to increase the rent by 10% next year which will still be less than the market rate (and less than the LHA for the area).

Flexibility is great but some people need protection from themselves.

Reply to the comment left by Cider Drinker at 28/05/2024 - 17:02
all good...unless rent caps come in....

Reply to the comment left by Reluctant Landlord at 28/05/2024 - 17:03
If rent caps come in and if this causes me an issue, I WILL get my tenants out.

I have had only two bad tenants in 20+ years. It didn’t end well for either of them.

Reply to the comment left by Cider Drinker at 28/05/2024 - 12:57
Wow TSB has caved in.
TSB ended their unfair practice against renters. A practise that lends money to house the renters.

Cider says it correctly:
Landlords have always cherished long-term tenants. Long-term tenants are good news