Student landlords face uncertainty with the Renter's Rights Bill

A new Bill set to overhaul the private rented sector (PRS) will cause turmoil for student landlords with periodic tenancies and new rules for gaining possession. 

The team at Accommodation for Students explained last week that the Renter's Rights Bill will abolish Section 21 evictions, bring in a landlord’s database and establish a Decent Homes Standard in the PRS, among other aims. 

The potential reforms affecting student landlords have now been made clearer and include enabling landlords renting 'off-street' houses - that's the term given in the Bill for student accommodation - to terminate tenancies ahead of the academic year. 

However, notice must be given before the tenancy starts - and student tenants can terminate with two months' notice at any time. 

Critics say there's a real prospect that students could hand in their notice after May's exams. 

That would see student landlords having a three- or four-month void period to deal with. 

Devastating shortage of student accommodation 

A study by the student housing charity Unipol found that the new legislation could also lead to a devastating shortage of student accommodation. 

It is concerned that 731,000 students, according to the latest HESA figures, are living in the private student sector. 

But if landlords sell up, there may not be enough alternative options for students to choose from. 

Unipol estimates that even a small decline of 10% in the availability of student housing could lead to 70,000 students being unable to find suitable accommodation.  

Abolishing fixed-term tenancies 

Unipol's deputy chief executive, Victoria Tolmie-Loverseed, has written to Matthew Pennycook, the housing minister, raising her concerns. 

In the letter, she expresses her worry about abolishing fixed-term tenancies for private rented student housing.  

She warns that the reforms could have unintended consequences for students, particularly those from disadvantaged backgrounds. 

Ms Tolmie-Loverseed said: "The proposed changes could significantly put at risk the widening participation agenda of higher education in the UK." 

Increased homelessness among students 

One of the main concerns raised by Unipol is the potential for increased homelessness and students able to serve two months' notice to quit at any time. 

That would also see joint tenants being forced to move out unexpectedly.  

Unipol also warns that the reforms could lead to higher rents for students.  

It says that as landlords face increased uncertainty due to the potential for shorter tenancies, they may raise rents to compensate - putting further financial strain on struggling students. 

Exacerbate the shortage of student accommodation 

Ms Tolmie-Loverseed also warns that the reforms could exacerbate the shortage of student accommodation, and she predicts a shortfall of 450,000 student beds by 2025/2026. 

In addition, the proposed changes could discourage landlords from offering student accommodation. 

There is a need, she says, to maintain a diverse and affordable range of student housing options.  

Unipol is calling on the government to reconsider the proposed reforms and explore alternative solutions that would better protect the interests of students. 

'Necessary for tenants to move out' 

Propertymark has also expressed its fears over the Bill and said: "A number of specific grounds will be introduced for sectors, such as student accommodation, where it is necessary for tenants to move out in order to free up places for eligible occupants. 

"Propertymark has called for the student ground to extend to all student sharers, for instance, households with two renters, and not just HMOs. 

"When the Renters (Reform) Bill was being considered in the last Parliament, Propertymark highlighted concern amongst landlords due to a lack of confidence that the available grounds gave them adequate protection.” 

The Ministry of Housing, Communities and Local Government spokesperson said it wants a balance that sees students benefit from the Bill and ensure student properties are available for the academic year. 

They added that all tenants, including students, will benefit from the flexibility and security that the Bill will bring. 

'Student market is no longer viable' 

Simon Thompson, the managing director of Accommodation for Students, said: "If landlords are faced with the prospect of three- or four-month void periods every 12 months, they may look at their business and decide the student market is no longer viable and let to other tenants. 

"There's also the prospect that the Bill could lead to a significant increase in rents for students, as landlords may seek to offset the potential financial impact of longer voids.” 

He added: "There's also the real and worrying prospect that a tenancy could be as short two months - a reality that student landlords don't need. 

"The introduction of the Bill comes when there is already a shortage of student accommodation - the government must listen to student landlords to protect the student accommodation sector."