After several weeks of political turmoil, Michael Gove has returned to
government as the Levelling Up, Housing and Communities secretary.
It was only in July that he was sacked by Boris Johnson, and he has now
been reinstated by the new Prime Minister, Rishi Sunak.
However, this means that Mr Gove’s flagship policy for the housing sector,
the Renters’ Reform Bill, could be back in play.
This means that student landlords need to be aware of the big changes that
could be introduced.
Periodic tenancies being introduced
Perhaps the biggest change is for periodic tenancies being launched to
replace assured shorthold tenancy agreements.
While an AST is the most common tenancy, the White Paper suggests that
tenants will get greater security with a periodic contract.
This would mean that student landlords will not be able to offer a tenancy
of less than 12 months – and the new law could see renters only giving two
months’ notice, even from the day they move in.
It’s also likely that section 21 ‘no-fault’ evictions would be shelved with
the industry still not sure about what landlords will be able to do to take
possession of their property.
‘Landlords can envisage operating without Section 21’
The chief executive of the National Residential Landlords’ Association, Ben
Beadle, said: “Our survey data shows that landlords can envisage operating
without Section 21 provided other proposals, such as on court reform and
reformed grounds for possession, have their confidence.”
He added that the NRLA will work closely with Mr Gove to ensure that any
reforms have the confidence of tenants and responsible landlords.
Propertymark’s head of policy and campaigns, Timothy Douglas, said: “The
levelling up reforms to the private rented sector appears to be back as
Michael Gove returns.”
He said that the Minister needs to tackle the rental supply crisis and
bring about leasehold reform and stimulate supply in the housing sector.
‘The introduction of periodic tenancies will, undoubtedly, cause a problem’
The managing director of Accommodation for Students, Simon Thompson, said:
“The Renters’ Reform Bill did cause a stir among landlords and the
introduction of periodic tenancies will, undoubtedly, cause a problem for
the vast majority of student landlords.
“We need to have an open and honest debate with the government when the
White Paper is discussed, and all landlords need to make their feelings
known before a law is introduced that will seriously affect how student
landlords run their accommodation for tenants.”
Angry students in Glasgow have begun
plastering windows
and bus stops with posters stating ‘University of Glasgow does not welcome
you’ over the lack of accommodation in the city. Many students are now
apparently staying in hotels or sofa surfing because there is not enough
accommodation available. The protesting students say the university has not
done enough to help with higher student numbers and fewer private rental
sector homes available.
But it’s not just in Scotland where students are struggling to find
accommodation, the Northern Echo reports that
university students in Durham
have had to sleep overnight on the street to find accommodation. They say
hundreds of students have been camping outside letting agents in a bid to
secure student property that is being released for rent next September. One
letting agent released all of its properties for the 2023/24 academic year
and was deluged with applicants. The situation of students having to queue
overnight is described as being ‘absolutely ludicrous’ by Mary Foy, the
Durham MP.
A prediction from Housing Hand, the rental guarantor service, about there
being a ‘tsunami of students’ who will
struggle to find university accommodation
this year has come to fruition. The firm’s Graham Hayward told FENews that
while they predicted the accommodation shortfall, it has been more
concentrated than they were anticipating. The firm says it has seen a big
uptick in accepted student applicants and they are still managing to offer
a quick turnaround service.
One council has revealed that it’s going to spend £5.5 million buying
student flats in a bid to help the city’s housing crisis. Leicester council
will
buy two student blocks
to house those who are waiting for accommodation. The council says it needs
786 new homes a year to meet a government target, but only delivers 146 per
year on average.
In the same week, Leicester University has unveiled a new £150 million
village for 1,200 students that is close to the city centre. The University
says that an open-air car park and derelict accommodation blocks have been
regenerated to create a
modern student facility
.
