Chancellor Philip Hammond, in the 2017 Autumn Budget, announced that he was holding a consultation to see how landlords could be encouraged to offer longer tenancies.
One expert proposes that the way to incentivise landlord to do this is to give tax relief for landlords who offer long-term tenancies.
David Cox, the CEO of ARLA Propertymark, which represents the letting industry, suggests that tax relief combined with a new housing court that makes for a quicker eviction process is enough to encourage long-term tenancies.
Speaking to The Daily Mail in October 2017, he said:
“Tax incentives and easier access to justice are the two key things which will give landlords the confidence to offer longer-term tenancies.”
He added that the housing court would be made up of housing law experts and would deliver both speedier and consistent judgements. Tax relief could be in the form of reintroducing tax relief on commercial mortgage interest payments, which is currently being phased out.
Sajid Javid, the Communities Secretary, has announced plans to appoint a single Housing Ombudsman to replace four current systems. He wants all landlords to be legally required to belong to this new ombudsman redress scheme. The scheme should improve the resolution process between tenants and landlords, but the ombudsman scheme will not have the power to evict tenants in the way Cox ‘s proposed housing court.
Cox’s plan is one way that landlords could be incentivised. During 2018, as the consultation process continues, other proposals could be heard.