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• new joint government-industry Sector Deal worth £420 million to transform construction through innovative technologies to increase productivity and build new homes quicker with less disruption
• ‘bytes and mortar’ revolution to use digital design and offsite manufacturing to transform building construction
• landmark deal will boost the delivery of government’s ambition to deliver 1.5 million new homes by 2022
• deal will support Clean Growth Grand Challenge mission to halve the energy use of new builds by 2030, helping families reduce their utility bills

An ambitious new partnership between the government and the construction industry, will be announced today (Thursday 5 July 2018) by the Business and Energy Secretary Greg Clark, in a speech to the Northern Powerhouse Summit in Newcastle.

With almost half of the economy reliant on the built environment and the services it enables, the government is bringing together the construction, manufacturing, energy and digital sectors to deliver innovative approaches that improve productivity in construction and accelerate a shift to building safer, healthier and more affordable places to live and learn that use less energy.

Business and Energy Secretary Greg Clark said:

The construction industry is fundamental to growing our economy as we build to invest in our future. Major infrastructure projects like HS2 and the commitment to deliver 1.5 million homes by 2022 mean that we need a construction sector that can drive innovation, delivering homes and infrastructure quicker.

As buildings account for around 30% of total emissions, we also want to ensure that we are at the global forefront in designing and building smart, energy efficient and affordable homes and buildings through the Clean Growth Grand Challenge, saving families money on their bills.

This Sector Deal is supported by the biggest government investment in construction for at least a decade and will drive economic growth and create well-paid highly-skilled jobs in every part of the UK.

Andrew Wolstenholme, Co-Chair of the Construction Leadership Council said:

Securing this deal sends out a statement about the vital contribution our sector makes to the country. Our industry builds the schools to educate the young, the hospitals to care for the sick, the police stations to keep us safe, the roads and railways that get us to work, the power stations that keep us warm and the homes we return to each day.

We are an industry that must be at the forefront of the UK’s drive for future growth and prosperity – and I’m confident that this deal will help to achieve that.

International Trade Secretary Dr Liam Fox said:

British firms are at the forefront of innovation in the construction and infrastructure sector and the government’s new Sector Deal will ensure that even more of our businesses have the confidence to do business in overseas countries.

With the global infrastructure market estimated to be worth $57 trillion by 2030, the opportunities are clearly there for our companies. That is why DIT, through our network of HM Trade Commissioners, Officials and GREAT.gov.uk, will work to identify these opportunities and provide advice to overseas businesses who may want to invest in the UK.

The Construction Sector Deal will deliver:

• £420 million investment in ‘bytes and mortar smart construction’ – investment will transform construction through use of digital building design, new manufacturing technologies and offsite manufacturing helping cut the time taken to deliver new build by 50%
• cheaper energy bills for families and businesses – support Industrial Strategy mission to halve the energy use of new builds by 2030
• 25,000 construction apprenticeship starts and 1,000 Construction T Level placements by 2020 to help give young people the skills that industry needs – with £34m to scale up innovative training models across the country
• $2.5 trillion of global exports – a globally-competitive sector targeting the growing international infrastructure market that is set to grow by 70% in the years ahead

Smart construction

The £420 million joint investment aims to transform construction productivity by driving the development of new innovative construction materials and techniques which will speed up building time, reduce disruption and ensure the homes, workplaces and public buildings of the future are more energy efficient. The deal will support the development of affordable, easy to construct homes, schools and other buildings which can be quickly and sustainably manufactured offsite, then assembled where and when needed.

Helping families save money

As buildings account for around 30% of the UK’s emissions, this Sector Deal will also help put the UK at the forefront of the global clean growth shift towards cleaner, more efficient construction. The government’s Buildings Mission announced by the Prime Minister as part of the Clean Growth Grand Challenge, set the objective of at least halving the energy use of new buildings by 2030, helping families to save money on their bills and making the UK a leader in the move to clean, green sustainable construction.

Future construction skills

As part of the deal, the government will work with the Construction Industry Training Board (CITB) to ensure a strategic focus on future skills needs and increase significantly the number of approved apprenticeships standards. With a third of the industry’s 3 million workers aged over 50, the Construction Sector Deal includes £34 million for expanding innovative construction training programmes across the country to up-skill the existing workforce and a commitment to increase the number of apprenticeship starts to 25,000 by 2020. Government will work with industry to prepare for implementation of new construction T Levels by supporting the sector to offer high quality construction industry placements. There will also be a single industry portal to support construction careers based on Go Construct.

Industrial Strategy

The government’s modern Industrial Strategy sets out how the government is building an economy fit for the future, and how we will help businesses create better, higher-paying jobs in every part of the UK with investment in skills, industries and infrastructure. Underpinning the strategy are four Grand Challenges reflecting global trends that will shape the future and represent industries where the UK has an edge: artificial intelligence and the data economy; clean growth; healthy ageing; and the future of mobility. Today’s investment forms part of the Clean Growth Grand Challenge, with the Transforming Construction investment supporting low-carbon approaches to housing.

Notes to editors

The construction sector, including the supply chain and professional services, had a turnover of £370 billion in 2016 and employed around 3.1 million workers, or around 9% of the UK workforce. The sector also exported over £8 billion of products and services. Increasing construction productivity would have a significant economic impact. Industry will be contributing up to £250 million, catalysed by a £170 million injection from government through the Industrial Strategy Challenge Fund.

• New agreement will see countries’ leading research centres deepen collaboration
• National governments sign five-year accord to work together to improve digital services
• London start-up accelerator Entrepreneur First to open fifth international office in Paris

Digital Secretary Matt Hancock will today visit Paris to announce a package of measures to strengthen ties between the UK and France’s digital industries.

The aim is to boost both countries’ digital economies and forge closer links between cutting-edge companies from both nations.

Mr Hancock will address a landmark bilateral conference on data and the digital economy alongside his French counterpart, Mounir Mahjoubi. He will confirm the UK’s world-leading centre for AI and data, The Alan Turing Institute, is signing an agreement with the French institute, DATAIA, to promote collaboration between the French and British sectors.

It will see the two organisations pursue collaborative research in areas of shared interest – for example, in fairness and transparency in the design and implementation of algorithms.

They will also work together to share expertise, paving the way for visiting researchers to spend time at each Institute and hosting joint workshops and funding calls.

At the UK-France Digital Colloque – a summit of more than 350 businesses, researchers and officials from both countries – Mr Hancock and Mr Majoubi will also sign an accord on digital government. This will commit to extending their cooperation in the digital sector – on innovation, artificial intelligence, data and digital administration.

Mr Hancock will also confirm London-based Entrepreneur First, a beacon for the UK’s excellence in developing tech talent, is to continue its global expansion with a new Paris office. He will also bang the drum for British tech and promote the opportunities for business-to-business collaboration at a breakfast meeting with business leaders.

Digital Secretary Matt Hancock said:

The UK is a digital dynamo, increasingly recognised across the world as a place where ingenuity and innovation can flourish. We are home to four in ten of Europe’s tech businesses worth more than $1 billion and London is the AI capital of Europe.

France is also doing great work in this area, and these new partnerships show the strength and depth of our respective tech industries and are the first stage in us developing a closer working relationship. This will help us better serve our citizens and provide a boost for our digital economies.

Alan Wilson, CEO of The Alan Turing Institute, said:

The fundamental goal behind all our research is to build a data and AI enriched world for the benefit of all. In order to do this, it is critical to forge international collaborations and share our knowledge, expertise and ideas with other research centres around the world.

The Institute and DATAIA both share a vision for building research in data science and AI which crosses disciplinary boundaries and recognises the societal implications of data and algorithms. It is a pleasure to kickstart this engagement and we look forward to working with them to advance UK and French excellence in this area.

Matt Clifford, EF co-founder and CEO, said:

EF exists to enable the world’s most ambitious people build extraordinary companies. It was founded in London, where we’ve already helped spark the development of high growth companies from scratch.

As we continue our global expansion we’re looking forward to working with France’s future founders and strengthening the ties between business and investors in both countries.

Notes to editors

Digital Colloque

The UK and France are world leaders in the digitisation of public services and are developing a data ecosystem which supports policy makers, corporates and startups using data from across the spectrum of closed, shared and open data.

The Digital Colloque will see leading policymakers and industry experts discuss the technologies revolutionizing the world.

It follows the commitment made by the President Emmanuel Macron and Prime Minister Theresa May during the France-UK Summit in January 2018 to boost cooperation in these fields.

This Colloque builds on the success of the inaugural UK France Data Summit 2017 in London and the UK-France Summit in Sandhurst in January 2018, where both countries agreed to foster bilateral discussions on digital issues.

It comes ahead of the French presidency of the G7 in 2019 and British presidency in 2021 to promote their shared vision on Global challenges.

More than 350 businesses, researchers and officials from both the UK and France are due to attend the Colloque.

Entrepreneur First

Entrepreneur First (EF) was founded in London in 2011 by Matt Clifford and Alice Bentinck to connect the world’s most ambitious technologists to the best investors globally. EF’s bespoke programme, the first of its kind in the world, helps outstanding individuals to find co-founders and investment, and build high growth technology companies from scratch.

Entrepreneur First, started in London in 2011, is a beacon for the UK’s excellence in developing tech talent, and already has sites in Singapore, Berlin and Hong Kong.

Its alumni include Magic Pony Technology, led by Rob Bishop and Zehan Wang, which was acquired by Twitter for £150m. Magic Pony’s founders, Rob Bishop and Zehan Wang, studied together at Imperial College, and met at Entrepreneur First.

To date EF – which opened its Singapore office in 2016 and this year opened in Berlin and Hong Kong – has helped over 1,000 individuals build over 150 companies with a total valuation of over $1 billion. EF’s companies have been funded by some of the world’s leaving venture investors in Europe and Silicon Valley.

And EF itself has also raised from some of the world’s best investors,including Reid Hoffman (founder of LinkedIn), Demis Hassabis (founder of DeepMind), Greylock Partners, Mosaic Ventures, Founders Fund, Lakestar and more.

• Government-backed industry-led delivery panel to boost new legal technologies
• Industry experts to provide advice and support
• Builds on Government strategy to drive business innovation

In a speech at the Lord Mayor’s Dinner for HM Judges at Mansion House on Wednesday evening, the Lord Chancellor unveiled plans for a panel of industry professionals to support and accelerate the development and adoption of innovative new legal technologies.

Chaired by The Law Society’s incoming President Christina Blacklaws, the group will provide direction to the legal sector and help foster an environment in which new technology can thrive.

The Government recognises the importance of embracing cutting-edge initiatives to ensure the UK’s £24billion legal services sector continues to grow and retain its world-leading reputation.

The legal sector is already adapting to harness the power of these emerging technologies – with the Serious Fraud Office introducing a document review system, backed up by artificial intelligence, that can review 2,000 documents a day and law firms embracing automated digital contracts that allow for on-going monitoring of contract terms.

Lord Chancellor David Gauke said:

I am determined to ensure our world-leading legal services sector continues to thrive and that the UK remains the primary choice for international business.

The Lawtech industry is experiencing rapid growth and cutting-edge initiatives are already underway across the country.

It is of paramount importance that, working together, we foster an environment in which these new technologies are embraced and take advantage of every opportunity created.

The UK is the ideal place for LawTech to thrive – with its progressive regulation, world-leading professionals and financial services sector and huge tech talent pool.

Today’s announcement builds on the Government’s work to boost innovation and emerging technologies and create a thriving service industry.

In April of this year, the Prime Minister announced a £20 million fund to encourage work between businesses and researchers and help the service industry, including the legal sector, take advantage of new technologies.

The Home Office has also announced the launch of start-up visas for entrepreneurs looking to come to the UK.

Notes to editors:

More information on the Home Office’s start-up visa programme is available here: https://www.gov.uk/government/news/new-start-up-visa-route-announced-by-the-home-secretary

More information on the Government’s £20 million industrial strategy can be found here: https://www.gov.uk/government/collections/industrial-strategy-challenge-fund-joint-research-and-innovation

• A new flagship 18 courtroom legal centre providing world-class legal services in the heart of London given go-ahead
• To be built on the site of Fleetbank House, the court will reinforce the UK’s position as a global legal hub

Developed in partnership with the City of London Corporation and the judiciary, the cutting edge, purpose-built court, which will also deal with business and property work as well as civil cases, will hold 18 modern courtrooms and replace the ageing civil court, Mayor’s and City of London County Court, and City of London Magistrates’ Court. Also included in the court will be a new City of London police station.

A feasibility study to look at whether a court might be built was announced last October, and now the plan has been given the go-ahead. Speaking to members of the senior judiciary at the Mansion House this evening [4 July], the Lord Chancellor, alongside the Lord Mayor, Charles Bowman, and Lord Chief Justice, will reveal that the court will be built on the site of Fleetbank House in the heart of the City.

English law is currently used in 40% of all global corporate arbitrations, and more than 200 foreign law firms currently have offices in the UK. Revenue generated by legal activities in the UK was worth £31.5bn in 2016, and the top 100 UK law firms generated over £22bn in 2016/17. Built next to some of the world’s leading legal, business and technology firms in the heart of legal London, this court will be a sign to the world that the UK remains the global centre for law and finance.

Lord Chancellor David Gauke said:

The flag of English law is flown in countries across the globe, and London already leads the way as the best place to do business and resolve disputes.

This state-of-the-art court is a further message to the world that Britain both prizes business and stands ready to deal with the changing nature of 21st century crime.

The City of London is the world’s financial centre, hosting an unparalleled cluster of financial, professional, and business services. The City’s legal services offer, clustered around the Temples in the West of the Square Mile, which plays host to more than 17,000 solicitors, is a vibrant centre for international law firms serving their clients across the world.

Commenting on the announcement Policy Chairman of the City of London Corporation Catherine McGuinness said:

This is a hugely significant step in this project that will give the Square Mile its second iconic courthouse after the Old Bailey.

Our rule of law is one of the many reasons why London is the world’s most innovative, dynamic, and international financial centre, and this new court will add to our many existing strengths.

I’m particularly pleased that this court will have a focus on the legal issues of the future, such as fraud, economic crime, and cyber-crime.

Fleet Street may historically be known for hosting newspapers, but I believe with this iconic project it will be seen as a world leading centre for legal services and justice for decades to come.

The Government is investing £1 billion in reforming and modernising courts and tribunals, which has already delivered:

• A fully paperless system in conjunction with Transport for London – which means thousands of cases involving fare evasion are dealt with more swiftly and effectively.
• An online system which enables court staff to prepare case files and access them digitally in a courtroom during a hearing – saving 68 million pages of paper.
• The ability for those convicted of minor motoring offences to make their initial plea online. Some 1500 pleas are dealt with online every week. Court staff and the police automatically receive the completed online plea form as soon as the defendant has submitted it, reducing delays.

In the civil courts people can now:

• Make a small money claim online – with over 3,000 claims issued in the first month, cases moving through more quickly, and user satisfaction over 80% during the pre-launch pilot.
• Apply for a divorce online – which has cut errors in application forms from 40% to less than 1%, saving people time and trouble during a traumatic time.
• Apply for probate online – which has also cut errors, sped up the process, and has a satisfaction rate of more than 90%.

Notes to editors:

• The timeline for building the new court is subject to finalising funding arrangements and securing planning permission. It is expected to be completed in 2025.
• The proposal for a new court was announced last October by the City of London Corporation, and work on feasibility has now concluded and a location for the court has been set. Funding will be provided by the City of London Corporation and HMCTS.
• The court will replace the civil court, Mayor’s and City of London County Court, and City of London Magistrates’ Court, which are owned by the City Corporation and which HMCTS operate.
  |* The Employment Appeal Tribunal that is currently at Fleetbank House will move to the Rolls Building.
• The City of London Corporation is the governing body of the Square Mile dedicated to a vibrant and thriving City, supporting a diverse and sustainable London within a globally-successful UK.

The two directors, Nadeem Ahmed and Ulhaque Ahtamad, were involved in highly complex Missing Trader Intracommunity (MTIC) fraud schemes, which involve artificially extended trading chains.

Typically in MITC fraud schemes, at one end there is a ‘missing trader defaulter’ who imports goods and charges VAT to its UK customers but does not pay what is owed to HMRC.

At the other end of the chain, there is a ‘broker’, which is an exporter that seeks to reclaim the VAT that has not been paid. When challenged, the broker insists on being paid and denies knowledge of the default on VAT payment to HMRC as there are intermediate traders who act as ’buffers’.

In both cases, evidence presented by HMRC and the Insolvency Service demonstrated the artificial trading features, which enabled the courts to decide that the directors ought to have had knowledge of their involvement in MTIC trading.

Nadeem Ahmed, 42 from Forest Gate, London, was a director of Face Off South Ltd (FoS), which was wound up in April 2015 following a petition by HMRC for £199,072 in unpaid VAT.

Investigations found that between June and December 2006, FoS exported £38 million worth of mobile phones and computers. The company then filed quarterly returns with HMRC attempting to claim back VAT to which it was not entitled.

HMRC warned Nadeem Ahmed about the risks of MTIC wholesaling of electronic goods and that he should conduct more robust checks on his trading partners, goods and commercial procedures.

However, Nadeem Ahmed ignored the general warnings and the varied MTIC trading hallmarks, as well as specific advice that FoS’s trades were traced to fraudulent losses.

Furthermore, despite the closure of FOS’s account with an offshore bank complicit with MTIC fraud, FoS continued to trade for another VAT quarter by setting up an account with an unregistered offshore bank. Fraudulent losses in its trading chains totalled up to £2.3 million.

Following a trial in 2013, the court dismissed FoS’s appeal for reclaims and found that Nadeem Ahmed knew the company’s trades were connected to fraud.

And considering Nadeem Ahmed’s knowledge of FoS’s involvement with this fraud, the High Court has since ordered that he is banned from running companies for 13 years – effective from 15 May 2018.

Nadeem Ahmed’s ban closely follows a High Court order for the 15-year disqualification of Ulhaque Ahtamad – the maximum sanction possible.

Ulhaque Ahtamad was a director of Masstech Ltd, based in Gerrards Cross, Buckinghamshire, and traded in carbon emissions allowance and metals.

Following regulations restricting fraud in electronic goods wholesaling, MTIC fraudsters sought new opportunities in carbon credit trading and Masstech Ltd played the role of a buffer artificially extending an MTIC trading chains.

Investigators found that Ulhaque Ahtamad made sales of more than £38 million in the wholesale trade of carbon emission allowances and metals with little initial finance in place.

Masstech also entered into trading arrangements which were too good to be true and was repeatedly warned by HMRC, in particular against paying third parties who were not suppliers. This left no money along the supply chain to pay VAT to HMRC.

And Ulhaque Ahtamad was obstructive in his dealings with HMRC, he failed to advise them of Masstech’s carbon credit trades or change of address, as well as preventing visits and sight of company records. He also paid £7.38 million to unconnected third parties, this topping the £7.1 million of tax losses in Masstech’s supply chains.

Tony Hannon, Official Receiver for the Insolvency Service, said:

Both Ulhaque Ahtamad and Nadeem Ahmed involved their companies in complex VAT fraud schemes which attempted to cheat taxpayers out of millions of pounds.

The serious nature of their misconduct has been reflected in the severity of their disqualifications and this should serve as a clear and strong warning to others that we will not hesitate to use enforcement powers to investigate and disqualify directors whose companies defraud the public purse.

Notes to editors

Nadeem Ahmed disqualification effective from 15 May 2018. Face Off South Ltd (FOS) (Company No. 05041464) was incorporated on 11 February 2004. Its trading address was at 421 Marshgate Lane, London E15 2NQ.

The petition to wind up the company was presented by HMRC on 25 February 2015 for £199,072 in respect of costs awarded against FOS for a VAT Tribunal and in respect of unpaid VAT. The winding up order was made against FOS on 20 April 2015.

Ulhaque Ahtamad’s disqualification is effective from 3 May 2018. Masstech Ltd (CRO No. 02737217) was incorporated on 4 August 1992 as Masstech Ltd. Its trading address was at Bishops House Market Place, Chalfont St Peter, Gerrards Cross, Bucks, SL9 9EA.

The petition to wind up the company was presented by HMRC on 11 February 2013 for £7,484,940 in respect of unpaid VAT. The winding up order was made against Masstech Ltd on 25 March 2013.

A disqualification order has the effect that without specific permission of a court, a person with a disqualification cannot:

• act as a director of a company
• take part, directly or indirectly, in the promotion, formation or management of a company or limited liability partnership
• be a receiver of a company’s property

Persons subject to a disqualification order are bound by a range of other restrictions.

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Navdip Singh Talwar aged 32, a bankrupt from Derby, was a senior employee of a company which carried out a massive tax fraud.

In 2012, seven men involved in VAT fraud estimated at £45m were given jail sentences ranging from ten to 15 years.

A six-year investigation by HMRC had found that the men, along with their friends, fraudulently operated six companies, buying and selling mobile phones and CD ROMs.

Navdip Singh Talwar, who was a senior employee of the company, but not a director, had a duty to exercise reasonable skill and care in the performance of his duties.

However, the trial heard, he knowingly assisted the director of the company to engage in tax fraud.

As a result of his dishonest assistance and following legal action by the liquidator, Mr Talwar consented to pay £23m.

Being unable to repay the £23m, Mr Talwar petitioned for his own bankruptcy in June 2017.

Following his bankruptcy, Mr Talwar’s conduct was looked into by a specialist team of investigators of the Insolvency Service.

If the Official Receiver considers that the conduct of a bankrupt has been dishonest or blameworthy in some other way, those facts can be reported to court, with a request for a Bankruptcy Restrictions Order (BRO) to be made. The court will consider this report and any other evidence and decide whether to make a BRO. If it does, the bankrupt will be subject to certain restrictions for a period between 2 to 15 years. The bankrupt may instead agree to a Bankruptcy Restrictions Undertaking (BRU) which has the same effect as an order, but will mean that the matter does not go to court.

On 17 May 2018, the Secretary of State accepted a BRU from Navdip Singh Talwar after he admitted to providing dishonest assistance to a company engaged in tax fraud.

His ban is effective from 17 May 2018 and lasts for 11 years.

Mr Ken Beasley, the Official Receiver of Public Interest Unit (North), part of the Insolvency Service, stated:

The Insolvency Service will take firm action when we find fraud in the market place.

Due to his actions, Mr Talwar was found liable for £23m and the consequence of his activities should serve as a lesson and deter others from acting in the same way.

The protection of limited liability is at risk when individuals participate in fraud or attempt to remove themselves from the firing line by not registering as a company director and action will be taken against them, whether they are a company director or an employee.

Notes to editors

Mr Navdip Singh Talwar is from Derby and his date of birth is December 1985.

Mr Talwar has given an undertaking to the Secretary of State for Business, Energy and Industrial Strategy, to be bound for eleven years, by the restrictions set out in insolvency law that a bankrupt is subject to until they are discharged from bankruptcy – normally 12 months – until 2029. In addition, he cannot manage or control a company during this period without leave of the court.

The restrictions set out in insolvency law that the bankrupt is subject to until they are discharged from bankruptcy – normally 12 months – include that bankrupts:

• must disclose their status to a credit provider if they wish to get credit of more than £500;
• who carry on business in a different name from the name in which they were made bankrupt, they must disclose to those they wish to do business with the name (or trading style) under which they were made bankrupt
• may not act as the director of a company nor take part in its promotion, formation or management unless they have a court’s permission to do so
• may not act as an insolvency practitioner, or as the receiver or manager of the property of a company on behalf of debenture holders
• may not be a Member of Parliament in England or Wales

The Insolvency Service, an executive agency sponsored by the Department for Business, Energy & Industrial Strategy (BEIS), administers the insolvency regime, and aims to deliver and promote a range of investigation and enforcement activities both civil and criminal in nature, to support fair and open markets. We do this by effectively enforcing the statutory company and insolvency regimes, maintaining public confidence in those regimes and reducing the harm caused to victims of fraudulent activity and to the business community, including dealing with the disqualification of directors in corporate failures.

BEIS’ mission is to build a dynamic and competitive UK economy that works for all, in particular by creating the conditions for business success and promoting an open global economy. The Criminal Investigations and Prosecutions team contributes to this aim by taking action to deter fraud and to regulate the market. They investigate and prosecute a range of offences, primarily relating to personal or company insolvencies.

The agency also authorises and regulates the insolvency profession, assesses and pays statutory entitlement to redundancy payments when an employer cannot or will not pay employees, provides banking and investment services for bankruptcy and liquidation estate funds and advises ministers and other government departments on insolvency law and practice.

Further information about the work of the Insolvency Service, and how to complain about financial misconduct, is available.

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Renters who may be forced to leave their homes at short notice will be given more security thanks to government action to introduce longer tenancy terms.

In plans published today (2 July 2018), Secretary of State for Communities Rt Hon James Brokenshire MP proposes the introduction of a minimum 3-year tenancy term, with a 6-month break clause, to help renters put down roots, and give landlords longer term financial security.

According to government data, people stay in their rented homes for an average of nearly 4 years. But despite this, 81% of rental contracts are assured shorthold tenancies with a minimum fixed term of just 6 or 12 months.

This can lead to tenants feeling insecure, unable to challenge poor property standards for fear of tenancies being terminated, and unable to plan for their future or contribute to their wider community.

Although tenants and landlords can already agree longer terms between themselves, the majority choose not to do so.

Under the proposed longer term agreement, tenants would be able to leave before the end of the minimum term, but would have greater protection if they wanted to stay in a property for an extended period of time.

Secretary of State for Communities Rt Hon James Brokenshire MP said:

It is deeply unfair when renters are forced to uproot their lives or find new schools for their children at short notice due to the terms of their rental contract.

Being able to call your rental property your home is vital to putting down roots and building stronger communities.

That’s why I am determined to act, bringing in longer tenancies which will bring benefits to tenants and landlords alike.

As part of its continuing commitment to give more security to renters, an 8-week consultation on the plan has been published, specifically looking at overcoming the barriers to landlords offering longer tenancies.

The 3-year model is one of a range of options and the consultation seeks views on longer minimum tenancies, which are used in other countries, as well as ideas on how to implement the model agreement.

Landlords play a vital role in providing homes to millions of people in this country and the proposals ensure that longer tenancies help them avoid costly periods while they search for new tenants and offers them flexibility to regain their properties when their circumstances change.

The government understands that some landlords worry about the time it can take to gain possession of their property in the courts. A call for evidence will be published this autumn to better understand the experience of users of the courts and tribunal services in property cases, including considering the case for a specialist Housing Court.

Further information

As part of the consultation, which runs until 26 August 2018, ministers are seeking views from landlords, tenants and related organisations about the most effective ways to tackle obstacles to introducing longer tenancies.

If government proceeds with mandatory longer tenancies, primary legislation will be required. Following the results of the consultation, the government will consider next steps with legal professionals.

The consultation will consider whether there should be any exemptions – such as for student accommodation.