A leading organisation for landlords says the celebrations which followed
last week’s win when Peers voted to
extend the student possession ground
will be short-lived.
The House of Lords delivered a major victory for student landlords by
approving an amendment to the Renters’ Rights Bill to extend possession
rights to smaller student properties.
During a marathon debate, peers voted to remove the House of Multiple
Occupation (HMO) restriction from Ground 4a.
That will enable landlords of one- and two-bedroom student homes to reclaim
properties for new academic year tenants.
Potential reversal in ‘ping-pong’
However, the victory may be short-lived as the amendment faces a potential
reversal when the Bill moves to the House of Commons.
That’s when MPs are expected to challenge it during the legislative
‘ping-pong’ process.
Joshua Helm-Cowley, the public affairs officer at the National Residential
Landlords Association, said: “We have repeatedly pointed to the need to
safeguard all ‘off-street’ student housing, and there was cross-party
recognition that one- and two-bedroom student properties, which would have
been excluded from the ground – make up a significant portion of the
market, and therefore in need of protection.
“Peers echoed our arguments, with the Shadow Housing Minister, Baroness
Scott, calling out the unfairness of disadvantaging landlords – and
students – with smaller properties.”
MPs need to agree
He continued: “The amendment was put to a vote and passed narrowly,
delivering a vital improvement to the Bill.
“This means that, as the Bill currently stands, the
HMO restriction
has been removed from the student ground.”
Mr Helm-Cowley said: “The government will likely look to remove this
amendment when the Bill returns to the House of Commons.
“We will continue pressing the government and MPs to retain this change
during ‘ping pong’ and ensure all off-street student housing can make use
of the possession ground, giving certainty to landlords and students.”
Propertymark is among other organisations which had warned that removing
fixed term tenancies without the ground 4a safeguard risks undermining
student housing supply.
Pet damage deposit allowed
Other debates on the Renters’ Rights Bill affecting student landlords
include a reduction in the re-letting ban from 12 to six months when a
property sale fails after a tenant is evicted.
Lord Cromwell argued this mitigates the ‘unjustifiably penal’ 12-month
restriction, which brings a financial burden on landlords and limits rental
opportunities.
He dismissed claims that landlords falsely evict to raise rents, noting
existing provisions allow standard rent increases without such measures.
Peers also voted to permit a separate pet damage deposit of up to three
weeks’ rent, offering landlords protection amid new rules preventing
blanket pet refusals.
Again, while these changes look promising, a lot hinges on further debates
and Commons approval.
Another debate is scheduled for 15 July, and the Third Reading is set for
21 July.
Critics also warn that the Bill’s timeline suggests Royal Assent will be
delayed until September because Parliament rises for summer recess on 22
July.
Ground 4a extension
The managing director of Accommodation for Students, Simon Thompson, said:
“The amendment to ground 4a is an important issue for student landlords by
offering flexibility to manage one- and two-bedroom properties in line with
the academic cycle.
“However, with the government poised to challenge the amendment in the
Commons, it now looks uncertain.”
He added: “For student landlords, the development means remaining vigilant
and keeping engaged in the process of this Bill.
“The expansion of ground 4a offers hope for landlords navigating the
student market’s complexities and yet it looks like we have another battle
ahead and we must hope that MPs understand the issues.”
