REASON AST need reforming!
The following is a prime example of why the AST needs updating and reforming to match the needs of “modern day housing needs” where we have more people homeless than ever before. Where renting is almost becoming as difficult to obtain as it is a mortgage if you earn 26K or under.
- AST are just that – they are only “reasonably” safe and secure whilst within the fixed period
- After the fixed period, the landlord can change, introduce new terms or in about 95% of cases increase the rent again.
- AST provide NO long term security for those wanting to rent long term due to financial circumstances – example, true case: A tenant in situ for over 13 years but renewing their AST every 12-14months with the same landlord, with same terms every AST with small rent rises each 12-24 months £10 per month -both landlord and tenant happy. New landlord takes over who is of the same family and decides he wants to change the terms of letting to this to this “long standing, reliable tenant” and raise the rent by £30-£40 per month as he wants to make more money -being told the property is for a pension fund – even though the rent currently is all profit as the property is owned outright, no mortgage with NO re-decoration on the property for 14 years, no major work, no new carpets, just as it was let originally. He can he do this, because there is no law or protection for anyone who rents on a long term basis – Every time that fixed term contract ends – YOU, the tenant are treated like a new tenant. In this situation someone who has built a home for themselves may be FORCED to leave their home because the incoming landlord decides he wants to change the tenancy to suit himself. This is opens up the AST to abuse in favor of the landlord, as all he has to do, if the tenant can’t pay the increase or wants to rent the property on the terms already in operation for 13 years – the landord can just say I want the property back and issue a notice 21. Appalling!
Some letting agents when doing my research recently want proof before letting on income: Income – you will need to show a total income of at least 30 times the monthly rent. For example if the monthly rent is £1100 you need to earn £33000 to pass. You will need to provide contact details at the company you work for of someone who can confirm your salary. So will RENTING become as out of reach as a mortgage and having a secure, stable home.
We have to STOP this view of houses being commodities for just making money – I have no objection whatsoever to a private landlord letting a property out for profit, but that profit has to be controlled – it is morally wrong to increase rents when there is no need to other than greed for more money when already the landlord is profiting 100% of the monthly rent when a property is owned outright.
We have about 3% of the population owing 72% approximately of all assets in the UK to which property is a very high proportion. Property’s from an inheritance is already a HUGE asset for the family it’s passed to, then they use it to cream off further profit at the expense of someone who is struggling on an average salary, as anything between 60-75% of their salary goes on renting. The government need to change the housing act and make changes to the AST so anyone renting over renting in the same property over 3 years has additional protection to the terms they originally accepted tenure on.
Letting agents instead of asking for proof of income to rent properties of 1K or more, should be stipulating that only a maximum of 30- 40% of someone’s income on 25K and under can go on renting – where landlords were made to adhere to this. No doubt we would have private landlords selling up, but as I have said before this would bring about in most areas an in flux of smaller more obtainable properties back on the market ultimately affecting the overall social housing situation.
The 1988 Housing Act is outdated to meet 21st century housing needs