Santander has extended its assured shorthold tenancy policy from 12 to 36 months, so landlords can make longer agreements with their tenants.
In the time agreed the landlord can’t up the rent, but they do have more certainty that the tenant will stay for longer, reducing void periods.
Miguel Sard (pictured), director of mortgages at Santander, said: “In areas such as London and the South East, property prices continue to rise and outpace wage growth significantly.
“Many renters aspire to take a step on the property ladder, but are resigned to ploughing their money in to rent, unable to save for a deposit.
“We hope these changes in policy will go some way to helping people budget and potentially save towards a deposit for their own property, supporting the first time buyer market and enabling social mobility, while also helping to prevent the risk of homelessness.
“Meanwhile, it also ensures landlords have a guaranteed rental income and don’t have to worry about loss of income with an empty property.”
Homelessness has worsened in England in recent years, which some have linked to landlords frequently putting up rents.
Yesterday’s figures from the Public Accounts Committee show there are 78,000 households, including 120,000 children, that are homeless and living in temporary accommodation in England.