Communities and Local Government CommitteeSupplementary written evidence submitted by Delancey Real Estate Management Ltd

We have announced that our tenancies will be for up to three years. After six months, tenants may give two months notice if they wish to bring the tenancy to an end. This is a rolling break, exercisable at any time after six months.

Rents will reflect CPI uplifts on the first and second anniversaries of the commencement of the tenancy.

The reason for adopting three years rather than something longer is that:

(a)anything longer is a deed, requiring signatures to be witnessed, and therefore potentially a little more hassle for tenants, apart from anything else; and

(b)we wish to avoid tenants having any SDLT liability on the net present value of the rent payable. Although unlikely, a five year lease for example for our largest apartments might just trigger the threshold and we are keen to ensure we do not come anywhere near this level.

We expect to discuss new leases with tenants as the three year period gets close to its term, when rents will reflect market levels.

Another important point is that we will not be charging fees to tenants at the outset.

They are assured shorthold tenancies.

Should somebody be particularly keen to take only one or two year tenancies, we will respond positively to them, and these may be necessary where somebody has, say, a one year visa for example.

June 2013