The Residential Landlords Association (RLA) is calling for tax reforms to encourage more landlords to offer longer tenancies.

A government consultation in July proposed a three-year tenancy model to meet demand from the growing numbers of families and older people in the private rented market.

One option proposes ‘financial incentives’ as called for by the RLA, which the government argues “could be quicker to implement” then mandatory three-year agreements.

It would also ensure that the vital flexibility the sector is good at providing is retained, enabling those wanting short-term tenancies to quickly access new opportunities.

The RLA is calling for tax relief on rental income which could increase each year a tenancy continues up to a maximum of five years if the tenancy is renewed. The relief would then remain at this level.

The association also wants the government to develop its plans for a housing court to speed up justice for tenants and landlords if something goes wrong in a tenancy.

The Housing Secretary, James Brokenshire, confirmed that the government will be consulting on a housing court in the next few months.

The RLA’s research found that 73 per cent of landlords would offer longer-term tenancies with a combination of financial incentives and court reform.

David Smith, policy director for the RLA, said: “Landlords recognise the demand for longer tenancies which provide stability for tenants and landlords.

“Recent statements by MPs suggest that positive taxation to support longer tenancies would gain support in parliament, enabling such tenancies to become available far quicker than imposing them by law.

“We call on the Chancellor to back this pragmatic proposal.”

Read more about the conditions, pros and cons of the three-year tenancy proposals in Carl Agar’s latest blog.