The UK’s leading student accommodation search engine,
Accommodationforstudents.com
(AFS) says the supply of HMO student accommodation (Houses of Multiple
Occupation), which can be up to £30 per week cheaper than PBSA (Purpose
Built Student Accommodation), will be compromised under planned changes to
tenancies as part of The Renters Reform Bill. This will result in less
accommodation choice and higher rents for students.
Currently the UK student housing market offers students a good range of
accommodation options, including PBSA provided by Universities and the
private sector, or shared housing options in HMOs provided by student
landlords. Both are vital in providing choice and affordable accommodation
options.
UK students account for 77 per cent¹ of enquiries on HMOs, but only 60 per
cent on PBSA. International students are more likely to enquire on PBSA
properties, accounting for 40 per cent of enquiries.
However, plans to ban fixed-term tenancies as part The Renters Reform Bill,
and instead transition all tenancies to one system of periodic tenancies,
would mean students would not have to leave their HMO accommodation at the
end of their fixed-term – usually the end of the academic year. This would
mean private landlords would be unable to guarantee spaces to new students
at the start of the next academic year, and could result in student
landlords exiting the market, subsequently reducing the mix of
accommodation options for students.
Accommodation for Students has already seen the impact following a similar
change in law in Scotland, with students struggling to find suitable
accommodation. Edinburgh ranks in the top ten most expensive cities for
both HMO and PBSA at £156.34 and £193.47 per week respectively.
According to AFS data, HMOs are currently marketed at an average of £22 per
week less than PBSA, and where a student chooses to manage their own bills,
this difference increases to £30.15 per week. The average price of an HMO
is currently £122 per week, or £113.85 without bills. The average price of
a PBSA is £144 per week.
Following post-pandemic grade inflation, which resulted in a higher intake
of students at some of the most sought-after universities, some cities are
already experiencing an undersupply of affordable accommodation. For
example, in Bristol, the average price difference between HMO and PBSA is
£76 per week, in York this is £43.53 and in Edinburgh the difference is £37
per week.
Simon Thompson, Director of Accommodationforstudents.com, says “
It is, in my view, vital that the Government exempts private student
landlords from its proposal to move all tenancies to periodic ones, as
it has for institutional landlords who run Purpose Built Student
Accommodation (PBSA). Failing to do so will force private landlords out
of the market, reducing the mix of affordable options and driving up
rents for student who are already on a limited budget. Furthermore,
where demand exceeds supply, students will be forced to look for
accommodation further away from their university town or campus,
meaning transport then becomes an additional cost and problem for
students.
“Student accommodation and its location forms a fundamental part of
university life. Many are already facing higher costs owing to rising
utility bills. If students cannot find or afford accommodation, those
on limited budgets are more likely to feel ostracized.”
Currently the most expensive city for student accommodation is London,
averaging £253.17 per week for HMO accommodation, followed by Cambridge and
Bath, which are £191.74 and £191.39 respectively. The cheapest city is
Wolverhampton at £68.75, followed by Bolton £70.45 and Stoke 77.41.
London is also the most expensive for PBSA at £258.11 per week, followed by
Bristol £243.04 and Bath £232.80. The cheapest cities for PBSA are
Hartlepool at £69 per week, Bradford at £70.82 and Hull at £75 per week.
Coventry, with access to Warwick, represents excellent value at £125.83 per
week.
