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

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

0:01 AM, 28th May 2024, About 7 months ago 13

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A bank has caved in to pressure from a renter group and agreed to extend the maximum length of tenancy contracts in their buy-to-let mortgages from 12 months to three years!

Tenant union group ACORN called on TSB to remove the restriction on tenancy lengths, arguing that the 12-month limit forces tenants into a cycle of uncertainty and instability.

The new rules mean it could be harder for landlords to evict problematic tenants.

Renters need stability

ACORN claim that a 12-month contract leaves tenants more vulnerable to evictions.

Eleesha Taylor-Barrett, a renter and ACORN board member said: “TSB’s policy meant that renters across the country are facing rent hikes, eviction and the stress and cost of trying to find a new home every 12 months, all during the housing crisis.”

“As a renter who’s moved five times in the last five years, I know first-hand the level of uncertainty these insecure tenancies can bring.”

“ACORN will continue to fight for rental reforms that will deliver the changes we desperately need, but we can’t sit around and wait for the government as it drags its feet, renters need stability and security now!”

TSB ending unfair practice

ACORN protested at 30 TSB branches across the country last weekend demanding an end to short-term tenancy contracts.

The high street bank announced a few days later that they would change the rules in their buy-to-let mortgage policy.

Chelsea Phillips, ACORN National Chair, said: “TSB ending their unfair practice against renters shows that when we come together we win. Action was taken by our members – normal people all up and down the country from Portsmouth to Newcastle, ages 1 to 80 to demand insecurity for renters ends.

“It is so inspiring that normal people can take on a bank and win. Things can change and they will if we come together.”

ACORN claimed in a social media post on X, formerly Twitter that they continue to be in open dialogue with TSB on making tenancy contracts open-ended.


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davidos

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18:42 PM, 30th May 2024, About 7 months ago

Why are the tenant group haters so riled up? The change just gives the option; the LL can still go 12m fixed if they wish. It's not like anyone's being forced into 3 years. That's why TSB changed so easily - they just rely on S8 instead

Rod

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17:44 PM, 1st June 2024, About 7 months ago

Reply to the comment left by Mick Roberts at 29/05/2024 - 05:38
Well said, Mick.

Chris is right, this is a positive step. Many lenders, including BMS, still specify a maximum of 12 month tenancy.

Before the RRB got washed out (just like Rishi) one of the points made in the Lords 2nd reading was to question why fixed terms were being abolished when
- it wasn't in the original bill
- it restricted the parties right to set contract terms
- it risked higher rents as landlords need to factor in costs of re-letting.

iHowz had drafted two amendments
- one for a new S8 ground for no fault eviction
- the other giving the option of tenant and landlord creating a fixed term.

This helps establish that tenants want the ability to have longer term fixed tenancies - nothing stopping both parties agreeing a 6 month trial period then locking in a longer period 2-3 months in, once they were both reassured that they could commit to it.

The RRB will be resurrected by whoever comes to power. iHowz will be lobbying to ensure that the new version is more balanced, to avoid the risk of more landlords heading for the exit.

Mick Roberts

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5:24 AM, 2nd June 2024, About 7 months ago

Reply to the comment left by Rod at 01/06/2024 - 17:44
I've got video coming on this soon as I get 10 mins.
Good job we got people like u & iHowz trying to make 'em see sense.

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