The controversial
Renters’ Rights Bill
has progressed to the Committee stage in the House of Lords following its
second reading.
The issue of all tenancies becoming periodic, the notice period that
tenants can give and the special nature of the student accommodation sector
were discussed.
The Housing Minister, Baroness Taylor, told the Lords: “The government took
time to ensure the Bill works for everyone, including students.
“To meet this goal, a new possession ground has been created to allow
landlords renting to students in HMOs to seek possession ahead of each new
academic year, facilitating the yearly cycle of short-term student
tenancies.”
PBSA removed from the AST system
She continued: “To further protect the student market, private
purpose-built student accommodation will be removed from the assured
tenancy system in recognition of the limited market such accommodation
focuses on, and the differences between purpose-built accommodation and
‘off-street’ private housing rented to students.
“Providers must sign up to government-approved codes of practice, which
will ensure homes are safe and good quality, to be removed from the assured
tenancy system.”
Table amendments for student landlords
Conservative peer Baroness Scott of Bybrook said: “We intend to table
amendments to address some of the most pressing concerns, including: the
capacity and operation of the courts; student landlords, who need certainty
of length of tenure and other mutually agreeable fixed-term contracts; some
exemptions for smaller landlords, who are less able to weather these
changes; the availability of insurance for damage caused by pets;
consideration of the property rights of landlords; and the impact on the
housing market.
“We will pursue these amendments for the benefit of landlords and tenants
alike, because we know what will happen if we do not.”
Exemption should extend to student landlords
Peers also suggested that student accommodation exemptions should also
extend to those landlords renting one and two-bedroom flats to students.
Baroness Taylor asserted that abolishing fixed-term tenancies will simplify
the system, preventing tenants from being ‘trapped’.
However, several Lords expressed apprehension about the ‘unintended
consequences’ of periodic tenancies – particularly for students.
Lord Truscott argued that most tenants favour fixed terms for security,
stating: “Tenants will have less security, not more, as instead of a one or
two-year tenancy, if mutually agreed, landlords will be able to give notice
at any time, up to four months if reoccupying or selling their property.
“Why cannot reasonable people agree a fixed term, with a break clause if
required? Incidentally, the majority of tenants want fixed-term tenancies.”
Amendments to support student renters
Propertymarks’ head of policy and campaigns, Timothy Douglas, said: “As
anticipated, members of the House of Lords delved into the detail of the
Renters’ Rights Bill and discussed the intended and unintended consequences
it will bring.
“Disappointingly, some Peers have fallen into the trap of not understanding
the costs and taxes impacting landlords and seeing rent control as an
additional measure to tackle affordability issues in the private rented
sector.
“Similar policies have failed in Scotland and must be, at all costs,
avoided by the UK government.”
He added: “Sensible amendments were talked about to support student
renters, much needed clarity on court reform and the implementation
timeline, tackling short term lets and local authority funding as well as
practical application of the grounds and amending deposit rules to allow
more tenants to rent with pets.
“These are the areas that the UK government must focus their attention
during the remaining stages of the Bill.”
Possession ground for student HMOs
Simon Thompson, the managing director of Accommodation for Students, said:
“While the introduction of a specific possession ground for student HMOs,
the broader implications of the Bill remain uncertain.
“The potential abolition of fixed-term tenancies raises concerns about
security and predictability since fixed-term agreements provide a framework
that works for both students and landlords.”
He added: “Moving away from that model risks introducing instability into
the market.”
“A balanced approach is crucial, one that protects tenant rights while
ensuring the continued viability of the student rental sector.”
More information
The House of Lords library has published a
briefing paper on the Renters’ Rights Bill
– which many student landlords might find useful.
