A number of lenders will now accept longer term tenancies, but most will only go to a maximum of three years and Leeds will be amongst the few with no maximum.
Last week’s report from The Resolution Foundation, citing the sharpest falls in home ownership since a peak in the early 2000s, highlighted that those in the private rented sector were spending more of their income on housing than homeowners and that there was more insecurity in short-term tenancies.
Richard Fearon, Leeds Building Society’s Chief Commercial Officer, had this to say: “This is a good example of our strategy of supporting borrowers who are not well served by the market. By demonstrating flexibility and not imposing a maximum tenancy period we are helping to support our Buy to Let borrowers.”
According to research from Shelter, 70% of renters would value a term between three and five years and the homeless charity has welcomed moves from lenders to amend longer-term tenancy criteria.
David Hollingworth, Associate Director Communications at L & C Mortgages, said: “More people are renting for longer but often find that they have little security of tenure, with tenancies often offered only as a six to 12 month option. Leeds Building Society’s removal of the maximum tenancy period will help increase choice for landlords and their tenants, both of whom may prefer a longer-term tenancy agreement to be in place.”
