Student housing crisis looms as Renters’ Rights Bill threatens university access

Proposed reforms to the private rented sector risk severely limiting access to higher education for students, warns a coalition of student housing portals and landlord organisations.

Accommodation for Students is among the organisations which have written to the Higher Education Minister, Baroness Smith, expressing serious concerns about the potential impact of the Renters' Rights Bill.

The letter comes as the House of Lords debates the Bill and the coalition argues that without amendments, many students will face big challenges in securing suitable accommodation.

And that, they warn, could restrict their university choices.

Student housing available to rent

The letter states: "It is staggering that there is no guarantee that at least one fifth of all student housing will be available to rent at the start of each academic year.

"The changes will ultimately prove to be counterproductive, increasing uncertainty and financial anxiety amongst student tenants.

"All it will lead to is chaos and confusion for students, making it harder for them to secure housing and ultimately restricting options for higher education.

"We call on the Government and Peers to act to protect the availability of all student housing."

Cycle of the student housing market

They say that the Renters' Rights Bill's proposal to abolish fixed-term tenancy agreements jeopardises the established annual cycle of the student housing market, which aligns with the academic year.

Exemptions for one- and two-bedroom student properties, constituting a fifth of the market, leave landlords without assurances of availability at the start of each academic year. Furthermore, restrictions on advance rent payments will make it virtually impossible for international students lacking a UK credit history to access student accommodation.

Also, those who rely on term-by-term payments for financial management will also find it difficult since advance rent payments will be banned.

Universities are struggling to accommodate

The coalition, which also includes the National Residential Landlords Association, warns that many universities are struggling to accommodate their student populations.

There are now fears the Bill's changes could hit the supply of student housing.

The new law could see landlords being deterred by heightened risk and exiting the student market altogether by selling their student properties or switching to other sectors.

This drop in supply could lead to higher rents, creating further barriers to education, particularly for students from lower-income backgrounds.

Triggered a landlord exodus

The coalition points to similar reforms in Scotland which triggered a landlord exodus from the student rental market compared to the broader private rented sector. A BBC investigation revealed many Scottish students desperately seeking accommodation, with some resorting to hostels and common room floors, and others facing lengthy commutes.

NUS Scotland reported that this crisis was forcing students to abandon their courses.

Universities Scotland acknowledged 'a significant contraction in the private rented sector in many Scottish cities' leading to 'unprecedented demand for university accommodation'.

'Special case that is student housing'

Writing on the Hepi website, Calum MacInnes, the chairman of the Student Accredited Private Rental Sector (SAPRS), said: "The Government plans to end fixed-term tenancy agreements (FTTAs) ignoring the special case that is student housing.

"Student housing relies on cyclical FTTAs that have successfully balanced student and landlord needs by aligning with university term times and ensuring landlords have security of tenure each year.

"By dismantling this model, the Bill risks reducing housing availability, creating uncertainty for students and disrupting the cyclical rental market.

"There is an easy solution, and it is not too late for the Government to listen to the sector and students and to fix the Bill."

He adds that there must be parity between the student private rental and the purpose-built sector as 'anything else risks exacerbating the existing crisis'.

Challenge for student landlords

Simon Thompson, the managing director of Accommodation for Students, said: "There's no doubt that the Renters' Rights Bill presents a complex challenge for the UK's student landlords.

"While the government aims to improve tenant rights, the proposed changes, particularly the removal of fixed-term tenancies and restrictions on advance rent payments, could inadvertently destabilise the student housing market."

He added: "The fixed-term tenancy aligns perfectly with the academic year - removing it creates a huge amount of uncertainty.

"How are student landlords supposed to plan for the next academic year if they don't know when their properties will be vacant?"