Tenant reform bill: Warning changes could ‘decimate’ the student market

Plans to abolish fixed-term lettings in England would “decimate” the student housing market, landlords have warned.

The National Residential Landlords Association (NRLA) said the lack of certainty that properties will be available at the start of the academic year could cause “chaos”.

But the National Union of Students said that if the students were exempted from the reforms they would become a “lower class”.

The government said it was interacting with students and property owners.

Landlords who rent to students typically offer a 12-month fixed-term lease to coincide with the academic year and ensure that properties do not sit vacant outside of term time.

However, under the Tenants (Reform) Bill, which was presented to Parliament last weekfixed-term leases will be abolished and replaced with rolling leases, meaning tenants pay rent weekly or monthly with no fixed end date.

The changes mean that tenants will only have to give a two-month notice to vacate a property.

The bill, which applies to England, also removes so-called “no-fault evictions”, where landlords can only evict tenants in certain circumstances, including when they want to sell the property or when they or a close relative want to move. in.

Purpose-built student housing, which is built specifically for students, will be exempt from these changes, but other student housing will not.

According to the Daily Telegraphthe government is considering making changes to the bill to make it easier for landlords to rent out their properties to students on an annual basis.

The NRLA said that under current proposals, landlords would rely on sitting tenants giving notice to vacate a property in time to allow new students to move in.

The group’s policy director, Chris Norris, said the government should add a provision allowing student landlords to end a lease based on the academic year.

Sarah Black, who rents out four Bath properties to students, said she was “extremely concerned” by plans to do away with fixed-term leases.

She told the BBC the proposals would lead to “chaos” as landlords could not guarantee that their properties would be available the following academic year.

Ms Black said she would normally rent to a group of friends for a 12-month period, but under the planned changes, if one tenant decides to stay at the property, this could prevent another group from moving in.

He added that if a tenant decides to move out early, a room could be empty for several months until the start of the next academic year, resulting in a loss of income.

Ms Black said that if the issues with the bill were not resolved, she would consider selling her properties.

“The more owners leave, the more supply, which is already very, very tight, will go down,” he said, adding that this would lead to higher prices for students.

“A lot of homeowners won’t be able to take the risk. They won’t be able to have vacant or rooms that don’t get rented mid-year.”

Labor MP Clive Betts, who chairs the Commons Housing Committee, said if more landlords left the student rental sector, this would worsen the existing shortage of student housing.

He argued that all student housing should be exempt from the changes to fixed-term leases.

“Believe [this issue] it will certainly be questioned when it comes up for debate in Parliament,” he added.

The bill has yet to be debated by parliamentarians and peers, and changes could be made before it becomes law.

Universities UK, which represents the sector, has also expressed concern that the abolition of fixed-term leases for student housing could undermine the stability of the sector and reduce the amount of accommodation available.

However, the National Union of Students said that exempting students from rent reforms would create an “inferior class of tenants”, who would not benefit from the same guarantees as other tenants.

The union added that under the current system of fixed-term leases, students are forced to pay for rooms they were not using during the summer months, or if they dropped out of their courses early.

Dan Wilson Craw, acting director of campaign group Generation Rent, said treating students differently from other renters could encourage “unscrupulous landlords to target that sector and take advantage of looser rules.”

“Part of the reason the government is removing fixed terms for the private sector is to give tenants a little more flexibility if the house they move into turns out to be unsuitable,” he said.

“So if you’ve signed a lease on a property that’s falling apart, if you can’t get the landlord to make the necessary repairs, then in many cases moving would be an option.”

A spokesman for the Department for Grading, Housing and Communities said: “The vast majority of students move at the end of the academic year and will not be affected by these reforms.

“However, we continue to engage with students and property owners on these measures to ensure they work for both parties.”