What is a Regulated Tenancy?

As we’ve been specialising in residential property investments for over a decade and dealing with investors from all backgrounds, we know just how popular and still in demand regulated tenancies are. And since they cannot be created anymore, the demand for them is even higher. So, what exactly is a regulated tenancy? It is a long-term tenancy with a private landlord. If a person’s tenancy started before 15 January 1989, it is likely to be a regulated tenancy. The tenants are entitled to a fair rent, which is usually lower than the market rent.

 

Right up to the time where regulated tenancies were no longer allowed to be created, these were some of the most popular mid to long-term property investments. They essentially enabled you to purchase a property far below the market value, it came with a tenant in situ who would look after the property and provided you a modest rent. Regulated tenancies do occasionally still become available on the market but they are extremely rare. And as is the way with anything rare, the demand and price shoot up significantly. So, you could end up paying over the market value.

 

Regulated tenancies were as close to a hands-free property investment that you could get and they complimented and helped diversify existing portfolios; that’s why the interest in regulated tenancies remains high.

 

So why are we writing about regulated tenancies? Because of their similarity to our Life Tenancy investments.

Like regulated tenancies, life tenancy investments:

  • Are mid to long-term property investments
  • Can be bought significantly below the RICS valuation (47% below on average)
  • Come with a Lifetime owner who covers all maintenance and costs of the property in the first instance
  • Have a property management service which makes them low maintenance
  • Can be bought as an individual or multiple units which help diversify any portfolio

 

There are of course a few differences between regulated tenancies & life investments:

  • Lifetime owners do not pay a rent. They have the right to live in the property rent-free for their lifetimes
  • We create new Life Tenancies regularly, meaning there is not the level of competition which comes when buying regulated tenancies
  • Our investments are based predominately in the south of England, an area which has seen the strongest property growth in the last 15-20 years

 

So, if you’re looking for an investment similar to regulated tenancies, but don’t want to have to pay significantly over the value and wait a long time for one to become available, get in touch with us now and find a Life Tenancy Investment to suit you. Or if you’d like more information on Life Tenancies, for example, how they are created. Read more here.


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