Student landlords will be pleased to hear that MPs say that student
tenancies should be exempt from government proposals to become periodic
or open-ended tenancies.
The revelation comes in the Levelling Up, Housing and Communities Select
Committee’s
report
on the planned changes to the private rented sector (PRS).
In it, MPs make clear that plans to replace fixed-term tenancies with
periodic tenancies are welcome to bring security for tenants – except for
the student accommodation market.
The White Paper published by the government states that only purpose-built
student accommodation (PBSA) will be exempt from the introduction of
periodic tenancies – while private student landlords will have to accept
open-ended tenancies.
‘Could make letting to students considerably less attractive’
The MPs say: “Currently, the proposal is to include this part of the PRS in
the tenancy reforms, but we conclude that abolishing fixed-term contracts
here could make letting to students considerably less attractive to private
landlords, as the student market mirrors the academic year and benefits
greatly from 12-month fixed tenancies.
“We agree with the evidence that not exempting the student PRS could push
up rents or reduce the availability of student rental properties, at a time
when the market in many university towns and cities is already very tight.
“We therefore recommend that the Government retain fixed-term contracts in
the student PRS.”
Mandatory grounds for possession
The committee also says that all forms of anti-social behaviour from
tenants should be mandatory grounds for possession and that guidance for
courts should be developed to ensure these cases are dealt with swiftly.
The MPs also say that if section 21 is repealed, it means landlords will
need to rely on section 8 of the Housing Act 1988, but this will need to be
amended with new grounds for possession for landlords or their family who
want to move into the property or if they want to sell it.
The report also recommends making it easier to gain possession where a
tenant has at least two months of rent arrears – and racked these up at
least three times in the last three years – regardless of their status on
the day of the hearing.
‘Fair and workable for both tenants and landlords’
Chris Norris, the National Residential Landlords Association’s policy
director, said: “The NRLA has never been against reform of the sector, but
it has to be fair and workable for both tenants and landlords.
“That is why the Committee is right to call for court reform to underpin
the ending of Section 21, changes in plans for student tenancies and
ensuring cases of anti-social behaviour are prioritised by the courts.”
Simon Thompson, the managing director of Accommodation for Students
welcomed the report and said: “It is good news that MPs on the committee
understand the impact that periodic tenancies will have on the student
accommodation sector, but we have to see what the reforms will bring.
“As landlords, we need to continue working together to highlight that the
introduction of open-ended tenancies will be a disaster for student
landlords and for students who are already struggling to find somewhere to
live while they complete their studies.”
Purpose-built student accommodation is ‘unfit for purpose’
NUS Scotland is calling for the reintroduction of a rent freeze in the
country’s student PRS and says that purpose-built student accommodation
(PBSA) is ‘
unfit for purpose’
. The union also highlights in a report, that between 2018 and 2021,
student rents rose by 34%. And some students have been forced to live in
unfinished, unsafe buildings while others have had to sleep on friend’s
sofas or live in hostels. The union highlights that the student population
in Scotland is growing but there’s been a drop in private rented
accommodation supply which means more students are relying more on PBSA.
However, PBSA tends to be more expensive, and the rent rises are
‘consistently outstripping inflation’. Ellie Gomersall, the NUS Scotland
president, said: “This report reveals the appalling state of the
purpose-built student accommodation sector. Whilst 12% of students have
experienced homelessness since starting their studies, unchecked rent
increases have allowed landlords to make untold profits. In the same period
that rents have increased by 34%, student support has only increased by
4.5%.” She added that the rent freeze must be reinstated by the Scottish
government – just weeks after the freeze was removed but it will be
replaced with a 3% rent cap for PRS tenancies in Scotland from April.
