Renters Reform Bill threatens student housing market, landlords warn
As thousands of students start their academic year, a landlord association has warned that the Renters (Reform) Bill will create an unfair and confusing situation for the student housing market.
The York Residential Landlord Association (YRLA) said that the bill, which aims to abolish ‘no-fault’ evictions and introduce periodic tenancies, will create a 'purposefully uneven playing field' between purpose-built student accommodation (PBSA) and private rented sector (PRS) landlords.
That's because PBSA providers will still be able to offer fixed-term tenancies to students, while PRS landlords will not.
This means that students in PRS properties will have to give two months' notice before leaving, or they will continue to be liable for the rent.
However, media reports reveal that the government is coming up against backbench MP opposition which means the Bill may not progress through Parliament.
PBSA only provides accommodation for 30-35% of students
The YRLA points out that in York, PBSA only provides accommodation for 30-35% of students, while the city's PRS is home to more than 50%.
In a statement, the YRLA says: "The Bill creates a purposefully uneven playing field.
"The PBSA sector who have signed up to the Unipol Code of Practice will be permitted to exempt themselves from the Bill and grant fixed-term tenancies.
"PRS landlords, even those signed up to the Unipol code, will not.
"There is no justifiable reason for this approach. There is no evidence of lesser quality or standards in the student PRS as compared to PBSA."
Student landlords could sign up for a similar code
The group says that student landlords could sign up for a similar code and adds that students 'will suffer as they will be confused' by the difference in the two accommodation sectors.
The YRLA also warns that landlords will not be able to guarantee student accommodation for the next academic year - which could leave thousands of students struggling to find somewhere to live.
It says: "The loss of fixed term tenancies in the Bill will effectively destroy the current arrangement between students and PRS landlords.
"As the Bill stands, landlords will have no certainty that students are going to leave on any specific date unless those students have given two months' notice of their intention to do so."
'Stressful time for students'
The YLA added: "This is a stressful time for students when they will be preparing for or taking part in exams.
"What seems like a simple administrative activity will therefore not take place as intended as this will not be a priority for outgoing students heading towards exams.”
The group says that landlords will not be able to offer a student tenancy because of the uncertainty of when they will leave.
It adds: “Indeed, they are unlikely to be in a position to do so until April in each year at the earliest, assuming notice is received from the outgoing students.
"Similarly, incoming students will be busy with exams of their own and expecting them to identify and enter into a tenancy for a rental property, often for the first time, alongside these pressures is unrealistic and unfair."
Renters Reform Bill was announced in 2019
The Renters (Reform) Bill was announced by the government in 2019 as part of its manifesto pledge to end 'unfair evictions' and 'make renting fairer for all'.
However, the Bill has faced delays and opposition from some backbench MPs who are concerned about its impact on landlords and tenants.
According to reports, the Bill may not see 'the light of day before the end of the year' as Parliamentary sitting days become scarce.
Parliament is currently in recess due to party conference season and when MPs return on October 15 there is only a limited window for the second reading of the bill before the King's Speech on November 7.
A reading of the Bill will happen
Government sources told The Telegraph that they are confident a reading of the Bill will happen before the King's Speech, but other sources said Number 10 is 'less confident'.
One source said Downing Street is worried about the lack of available sitting days and the 'incredible resistance' from some MPs.
One MP told the newspaper that a huge number of backbench MPs are against the bill and that it could be delayed even further.
Simon Thompson, the managing director of Accommodation for Students, said: "I have been saying since the Renters (Reform) Bill made its first appearance that student landlords in the private rented sector will be at an obvious disadvantage - and the York landlords spell out the problems.
"Moving to periodic tenancies will not be possible for landlords who don't want the uncertainty and they will, sadly but understandably, leave the student accommodation sector.
"The government could do something to prevent this happening and I urge them to consider those steps urgently."
