Letting Agent Calls for More Long Term Tenancy Agreements

“Shorthold tenancies should not be the only option,”
says Mike Goddard from Belvoir
Mike Goddard, CEO and founder of Belvoir, the UK’s largest specialist lettings agency, has called for the introduction of more long-term tenancy agreements to bring Britain in line with the Continent where such practice is commonplace.
Speaking on the BBC2 Money Programme, entitled “Credit Crash Britain: Property – is it the end of the affair?” Mike explained how tenants and landlords could benefit from the security of long-term tenure.
With average UK house prices plummeting by £15,000, new mortgage approvals dropping by 95% and the number of houses sold at a 30 year low, the Money Programme predicted that by 2010 up to two million people could be in negative equity and more people than ever are becoming landlords and tenants.
“We need to recognise that renting can be a financially viable and sensible lifestyle choice,” said Mike, who founded Belvoir in 1995 at the heart of Britain’s last recession. “The days when renting was viewed as a second rate option are fast disappearing, as is the stigma of being a tenant.
“We are now seeing the first stage in a fundamental shift in attitude by the British public toward homeownership and renting, but it is evident that more tenants want increased security of tenure in where they live, and this is not readily available within the current legal framework of the Housing Act.
“In France the rental market is highly developed and long-term tenancy is a well-proven and well used option for tenants who wish to organise their financial affairs in this way. I believe that in the UK we will gradually move towards a similar situation; shorthold tenancy will not be the only option and long-term tenancies will become readily available. This will give the tenant more rights and more security.”
Mike has always practised what he preached and for the past eight years lived with his wife, Stephanie in an impressive 14-bedroom rented country estate in Northumberland. Over the years Mike has made many improvements to the property and presenter Max Flint asked if he thought spending money on rented accommodation is a waste of money. “I think that is a very British attitude,” replied Mike, “When we came here I expected to stay for ten years and any money I spent on the property I considered to be a good investment for me and my wife, enhancing the way we live in it.”
The Money Programme reported a completely different attitude to renting property in France, where even before the credit crunch mortgages were notoriously difficult to obtain. Three-year leases are standard, often increasing to nine years, tax incentives are available to people renovating property for the rental market and although tenants have more rights they accept responsibility for repairs and maintenance. Mike believes this is a fundamental incentive to long-term tenancy.
”A landlord would be unwilling to give long-term tenancy unless there was an agreement that the tenant would take responsibility for some of the costs,” said Mike. ”Equally a tenant needs the security of knowing they can live in the property long enough to benefit from any money they spent on it.”
In a paradox, Mike was recently unable to negotiate a ten-year lease on his Northumberland home and has reluctantly become a homeowner. He said: “I am disappointed that I couldn’t negotiate a reasonable length of lease of at least ten years because that would have given me the opportunity to enjoy living there and also to renovate the gardens whilst giving me the time to benefit from the work I did. In buying a property I am building up potential inheritance tax problems for the future - I would far rather rent.”