Student landlords failing the Decent Homes Standard could pay two years' rent compensation

The Labour government has confirmed that purpose-built student accommodation (PBSA) providers will be exempt from the proposed Decent Homes Standard - but private rented sector (PRS) student landlords must follow the rules. The government says it will consult on a new standard for the social housing and PRS sectors - the consultation will look to ensure safe, secure housing as the standard which tenants can expect.

However, private student landlords could be facing significant penalties for failing to meet the standard.

The penalties include fines of up to £40,000 and the possibility of paying student tenants up to TWO years' worth of rent.

Regulations and enforcement of landlords

The news comes after Labour MP Uma Kumaran asked the housing minister Matthew Pennycook about what assessment has been made of the adequacy of the regulations and enforcement of landlords in the student sector, so they are held 'accountable'.

Mr Pennycook replied: "The government is committed to improving housing quality for students and will apply a Decent Homes Standard (DHS) to the private rented sector (PRS) for the first time to ensure homes are safe, secure and hazard free. "This will include homes let to students on assured tenancies. The Renters' Rights Bill is the means by which this will be done."

He says that local authorities will be handed enforcement powers to serve a notice for a landlord to make the necessary improvements.

Local authority prosecuting the landlord

Failing to improve a student home could see the local authority prosecuting the landlord or imposing a financial penalty of up to £40,000.

Mr Pennycook said: "The proceeds of which it must use for future PRS enforcement action.

"Tenants, and local authorities, where any rent has been paid via Universal Credit, will also be able to take direct action in such instances by pursuing a rent repayment order, meaning the responsible landlord will need to pay the tenant, or local authority, up to two years' rent."

Not all student landlords will be affected

However, the minister also made clear that not all student landlords will be affected by the Bill, and he explained: "The Bill will exempt purpose-built student accommodation (PBSA) from the assured tenancy system if the landlord is signed up to a government approved code of management practice.

"Such accommodation will therefore not be subject to the DHS, but landlords will need to meet rigorous standards set by the codes which are tailored to the needs of PBSA."

This will mean ensuring accommodation safety and that it’s well-managed with ‘effective working relationship between tenants and managers'.

PBSA code members must have robust procedures for handling tenant complaints.

Failing to do so, Mr Pennycook says, 'will result in membership being terminated, meaning the property will then be subject to the DHS.'

'Every tenant deserves a home that is safe'

Writing on the National Residential Landlords Association (NRLA) website, its chief executive Ben Beadle said: "I am sure every landlord worth their salt would agree that every tenant – regardless of tenure - deserves a home that is safe, warm and secure.

"But is the existing Decent Homes Standard , with its over reliance on arbitrary figures, really the right vehicle for delivering this?"

He adds: "Standards in the PRS are covered by the existing Housing, Health and Safety Rating System (HHSRS), a system which is itself currently under review.

"What is key is whether a property is fit for purpose, not arbitrary figures.

"Any standard needs to be tailored to the private rented sector and I have been speaking to both the housing minister and shadow housing minister to make just this point."

'Aim to improve student housing standards'

The managing director of Accommodation for Students , Simon Thompson, said: "While the government's aim to improve student housing standards is commendable, the exemption for PBSA providers creates an uneven playing field.

"This could potentially drive more landlords away from the PRS market, further exacerbating the housing crisis for students."

He added: "It's crucial that the government-approved codes of practice for PBSA are robust and effectively enforced.

"Landlords in the PRS sector are facing significant financial and regulatory burdens.

"The government must ensure that these codes do not create a loophole that allows for substandard living conditions within PBSA."