Paragon comes out in support of longer tenancies
In support of the move the specialist lender has made changes to its criteria allowing landlords to offer longer-term tenancies of up to 36 months.
The Private Rented Sector is home to more families than ever before with 20% of housing in the sector now providing homes for families with dependent children.
John Heron, managing director of Paragon Mortgages, said: “The PRS is the fastest growing sector in the housing market and an increasing number of families rely on it for their home.
“At the same time many tenants continue to value the flexibility and choice the PRS delivers. This is why we welcome the Housing Minister’s approach in the new model tenancy agreement, it recognises that some PRS tenants will still require that flexibility, but others need greater security.
“We have 50,000 landlord customers and have consistently taken a leading role in developing socially responsible lending policies in buy-to-let and already encourage our landlords to make their properties available to people on local authority housing lists through public sector leases of up to five years.
“Families undoubtedly need more stability and peace of mind though, and with that in mind we have made changes to our own lending criteria and will now except 36 month tenancies, allowing landlords to offer even greater flexibility where this new model lease is used.”
Housing Minister Brandon Lewis said: “All tenants and landlords deserve flexibility and choice and I’m delighted that Paragon has made these changes.
“They support the work we are doing to build a bigger and better Private Rented Sector and offer families the security and stability they deserve.”