Nationwide allows landlords to offer longer-term tenancies

26 June 2013

'Nationwide on your side' logo

The Nationwide Building Society Group is the first mainstream buy-to-let-lender to allow landlords to offer their tenants longer-term contracts.

Most lenders restrict buy-to-let borrowers by requiring them to offer their tenants a maximum contract of 12 months.

By allowing customers the choice to offer longer-term lets, The Mortgage Works, part of Nationwide, hopes to give more stability to some of the nine million people in England who rent their homes privately.

Richard Napier, Divisional Director of Mortgages at Nationwide Group, said: ‘The private rental sector has grown and changed phenomenally over the last few years, with rising numbers of families looking to rent in particular.

‘We want our buy-to-let borrowers to be in a position to be able to meet the changing needs of the market.

‘To help fulfil Nationwide’s pledge of helping 750,000 people into a home of their own over five years, we are developing innovative solutions to housing problems, and this development is another indication of that commitment.’

Campbell Robb, Shelter’s Chief Executive, said: ‘This news is very welcome recognition that six- or twelve-month tenancies just aren't working for England's nine million renters.

'More and more families are now renting their homes, but all too often short tenancies mean changing schools, leaving friends behind and growing up with constant upheaval.

‘With two thirds of renters saying they would like the option of staying in their home long term, it's encouraging that Nationwide is leading the mortgage industry to help make renting more stable. We look forward to other mortgage lenders following suit.’

Longer-term tenancies are the latest in a series of initiatives by the Nationwide Group aimed at supporting the growing and changing private rented sector.

As part of Nationwide’s pledge, Nationwide and Shelter will work in partnership aiming to support 16,000 people into (or to maintain) a home of their own.

Find out more about Nationwide's citizenship pledge in their Living on your side strategy

What are the problems with the private rented sector? Learn more about renting in England