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?”
