Government has launched a consultation into making three-year tenancies the mandatory minimum term for residential rental properties, leaving huge question marks over how it would affect mortgage lenders, the majority of whom would have to change their rules for buy-to-let lending.

Housing secretary James Brokenshire 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.”

However, shadow housing secretary John Healey said: “This latest promise is meaningless if landlords can still force tenants out by hiking up the rent.”

He said Labour Party plans included controls on rents, an end to so-called no-fault evictions and protection against sub-standard properties.

The consultation is said to propose that tenants will have to be offered a minimum three-year tenancy agreement but that they could leave before the end of that term. The consultation is due to run until August 26 and will look at whether there should be some exemptions to the three-year rule, for example where there are student tenants.