Student housing crisis looms as Renters (Reform) Bill heads to the Lords

Steve Lumley·3 May 2024·5 min read
Student housing crisis looms as Renters (Reform) Bill heads to the Lords

A coalition of student housing and higher education organisations have voiced their concerns over the Renters (Reform) Bill's potential impact on student housing supply.

The Bill, which recently passed its final reading in Parliament, is now heading to the House of Lords for debate.

But the coalition, which is known as SAPRS (Student Accredited Private Rental Sector) and includes Universities UK, Unipol and Nottingham Trent University, is calling on the Government to make further changes to the Bill to protect student housing supply.

Purpose-built student accommodation tenancies are exempt

Originally, the Bill stated that all tenancies would be periodic with a provision that would see purpose-built student accommodation (PBSA) tenancies being exempt.

That changed after student landlords and universities highlighted that landlords need fixed-term tenancies so they can ensure a property is empty for new students.

The Bill - unless there is another amendment - states that student landlords can get possession and all student tenants would be evicted at the same time.

But landlords must add this provision to their tenancy agreement when it begins.

However, SAPRS says the change being proposed does not go far enough, and the organisation's chair, Calum MacInnes, said: "Anything less than parity with the way the Bill treats the purpose-built student accommodation sector is just not enough."

Highlighted a growing shortfall in student housing

Real estate firm Savills recently highlighted a growing shortfall in student housing, with more than 230,000 beds needed to meet the demand for PBSA.

A recent poll commissioned by SAPRS revealed that 53% of the British public believe the government should be doing more to support students in finding housing.

Now, SAPRS says that government plans to end fixed-term tenancy agreements (FTTAs) for private student housing could threaten the availability, affordability and quality of student housing across the country.

This comes after Levelling Up Minister Jacob Young confirmed in March that the Bill would be amended to resolve concerns about the impact on the student accommodation sector.

'Grim picture of what the future holds for student housing'

Mr MacInnes said: "These predictions paint a grim picture of what the future holds for student housing if we don't see urgent steps to address the student housing crisis.

"With the pressure of end of year exams and coursework, the next few months will be incredibly challenging for students as it is."

He added: "The government must ensure the Renters (Reform) Bill recognises the situation and offers security for private student housing."

Student housing market is an 'absolute nightmare'

Students have expressed their concerns, with Clemmie Meadon, a third-year student at Durham University, saying: "The student housing market in Durham is an absolute nightmare.

"Hearing about the Renters (Reform) Bill worries me."

Emilia Davies, an undergraduate student at Durham, added: "People had warned me about how hard it is to find accommodation in Durham.

"It's already bad enough without this Bill, which could make housing even more expensive."

'Doesn't mean student landlords can relax'

Simon Thompson, the managing director of Accommodation for Students, said: "Because the Renters (Reform) Bill has gone to the Lords, doesn't mean student landlords can relax.

"An amendment could be made at any time, and we need to ensure that, as SAPRS says, the PBSA and private student housing sector are treated equally."

He added: "In the early days of the Bill, the government obviously realised there is an issue with PBSA tenancies being periodic - so why didn't they appreciate the same impact on the private sector?

"It's unlikely now that things will change after the last Parliamentary debate, but we still have a General Election to hold which could throw another spanner into the works."