A GROUND-breaking plan to guarantee renters three-year long tenancies is being killed off by nervous Downing Street, it emerged.

The new policy, pushed by Housing Secretary James Brokenshire, would give long-term security to tenants while allowing them to move out earlier if they wanted to.

4 A new plan to guarantee renters three-year contracts has been 'crushed by the Government' Credit: Alamy

Landlords would no longer be able to chuck out tenants after a short time to let them jack up rents.

But the Treasury opposes the move over fears it will scare off investment in property development.

And Theresa May’s senior No10 aides want to water down the mandatory new tenancies down to just a voluntary system because they worry it would be defeated in the Commons by a handful of rebel Tory MPs.

A senior government source said: “Hammond and May are both losing their bottle on three year tenancies, for different but equally pathetic reasons.

4 Housing Secretary James Brokenshire put the new plans forward to the Government Credit: Alamy Live News

“It’s a proper election winner but they’re going to blow it.”

Renters in England and Wales get one of the worst deals in Europe. In Scotland, tenants already enjoy the right to stay in their home for as long as they like.

Tory MPs believe the policy has massive political importance and could even keep the Conservative government in power at the next election.

It would help them win back tens of thousands of renters who defected to Labour in 2017.

4 MP Will Quince has said that 'insecure tenancies are a leading cause of homelessness' Credit: Facebook

Research has revealed the Tories lost almost a third - 29 per cent – of all renters who voted for them in 2015 during last year’s nationwide poll, with three-quarters of them switching to Labour.

Backbenchers insisted mandatory three year tenancies must not be scrapped.

Backbench Tory MP Will Quince said: “Insecure tenancies are a leading cause of homelessness, as well as causing anxiety for parents worried about their children’s schooling arrangements.

“Only by legislating can we ensure that landlords offer households the longer tenancies they want and give families the stability they deserve.”

4 Homeless charity Shelter have said families have to put up with 'blink-and-you-miss-it' contracts Credit: Alamy

Homeless charity Shelter also back the policy. Its CEO Polly Neate said: “As it stands, families across the country have to put up with blink-and-you-miss-it six-month contracts.

“This is nowhere near enough time to put kids through school and in the worst cases leaves renters looking over their shoulder worrying about the terrifying threat of homelessness.

“We need the government to fix this mess by standing up for renters and giving them a legal right to stay in their home for longer - anything short of this will be a complete and utter waste of time.”

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Nearly five million rent privately — 20 per cent of households.

The figure is up 74 per cent in the past decade, with 46 per cent of 25 to 34-year-olds now living in private rentals as house prices rocket.

Initial government proposals for the ground breaking policy were made in June, and are currently being consulted on for a decision in time for Tory conference.

The Sun Says THE Government must have a death wish if it intends to bin a policy specifically designed to help Generation Rent. It makes sense to guarantee tenants three-year tenancies to avoid landlords booting them out after a year and raising the price. For young people who cannot ­afford to buy in London and the South-East, it is at least some extra security. And it’s not just a sensible thing to do. It’s critical to win back Millennial votes. But Treasury officials fear it will deter property investors. Are they mad? Whose side does the Government want to be on? Well-heeled landlords with multiple properties? Or struggling young people?

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