PRS operators pledge three-year tenancies through British Property Federation

The British Property Federation and 20 organisations from the build-to-rent sector have pledged to provide three-year tenancies in new housing developments in response to government demands. The provision of longer, secure leases accompanied the government’s housing white paper, though not all within the sector had wanted to commit to three-year terms. However, the new pledge says: “One of the benefits of the UK’s new build-to-rent sector is its ability to offer longer tenancies to its customers. We, the undersigned, therefore pledge to offer our customers the option of a three-year tenancy in any of our new build-to-rent buildings. “Our customers will not be under any compulsion to take up this three-year tenancy option, and can still opt for shorter terms. To further assist customers with their budgeting, we pledge to review rents no more frequently than once a year or at the end of the initial term, and to set out clearly at the start of the tenancy the basis on which rents will be reviewed. Such tenancies will allow the tenant to break, after a short period of notice.” The sector, which has been under-represented in previous housing policy, received recognition in the white paper, notably through concessions on the amount and type of affordable housing it needs to provide. But alongside the recognition, housing and planning minister Gavin Barwell asked it to offer family-friendly tenancies, such as for three years, for those who want longer-term stability when renting. The housing white paper said the government will: “Ensure that family-friendly tenancies of three or more years are available for those tenants that want them on schemes that benefit from our changes. We are working with the British Property Federation…to consolidate this approach across the sector.” The BPF said it has published the pledge to demonstrate its commitment to working with government to ensure the sector can play its part in rolling back 20 years of under-supply of housing. Signatories Operator Signatory Allsop Andy Jones, managing director Atlas Jonathon Ivory, managing director be:here Tim Treadwell Dorrington Duncan Salvesen, director Essential Living Martin Bellinger, chief operating officer Evenbrook John Coles, director Fizzy Harry Downes, managing director Get Living London Neil Young, chief executive officer Grainger Helen Gordon, chief executive officer Greystar Mark Allnut, managing director Hermes Phillip Nell, fund director Home Group Kitson Keen, head of new rental Invesco John German, senior director – residential investment L&G Bill Hughes, head of real assets LaSalle Andrew Stanford, head of UK residential M&G Real Estate Alex Greaves, head of residential investment Moda Living Tony Brooks / Johnny Caddick, managing directors Moorfield Charlie Ferguson Davie, chief investment officer PLATFORM_ Jean-Marc Vandevivere, chief executive Touchstone John Midgley, director BPF director of real estate policy Ian Fletcher said: “The build-to-rent sector welcomes government’s multi-tenure ambitions for the housing market, as outlined in the recent housing white paper, and this pledge underlines one of the many benefits of the sector to government and the sector’s customers. “While many build-to-rent providers already offer longer tenancies, our aim is that three-year tenancies become a trademark of the sector.” To send feedback, e-mail alex.peace@egi.co.uk or tweet @egalexpeace or @estatesgazette