Renters' Rights Bill will worsen the student housing crisis - SAPRS

The Renters' Rights Bill will worsen the student accommodation crisis if it passes in its current form, a leading organisation representing student landlords warns.

SAPRS (Student Accredited Private Rental Sector), which represents a group of leading second- and third-year student accommodation suppliers, wants the Bill to be modified so there’s parity between private student housing and purpose-built student accommodation (PBSA).

The Bill, which aims to overhaul the private rented sector (PRS), would ban fixed-term tenancy agreements (FTTAs) for England’s student accommodation.

However, SAPRS and other higher education experts believe that the Bill does not recognise the student housing market’s unique structure.

'Introduction of the Renters' Rights Bill'

Calum MacInnes, the chair at SAPRS, said: "We were delighted to see the introduction of the Renters' Rights Bill by the new government and support their ambition to overhaul the private rented sector.

"However, it's crucial that students across the country don't suffer from the reforms."

He added: "We will continue our warnings until students get the housing system they deserve."

SAPRS warns that if the Bill passes in its current form, landlords may leave the student market, leading to less supply and higher rents.

The student accommodation crisis

It highlights a similar situation which occurred in Scotland, where the student accommodation crisis has significantly worsened following the introduction of similar legislation.

Recently, MPs expressed concerns about the potential impact of the Bill on student housing.

In the Bill's Second Reading, Gideon Amos, the Lib Dem spokesperson for housing and planning warned that there is the potential for a 'significant withdrawal’ of student homes from the sector.

David Simmonds, the shadow housing minister, said there must be 'appropriate flexibility’ in delivering student homes.

Now, SAPRS says that the student PRS should enjoy the same exemption as the PBSA sector – but must follow a government-approved code of conduct to protect student rights.

This would, it says, provide the security of supply for good landlords to continue providing student accommodation for years to come.

Protect the student letting cycle

The chief executive of the National Residential Landlords Association (NRLA), Ben Beadle, was among those giving evidence to MPs at the Committee stage this week.

He told MPs that the Bill doesn’t strike the right balance and by not having fixed tenancies, student tenants won’t know if a property will be available when they need it.

Mr Beadle added: “There will be a behaviour change where tenants will give two months’ notice.”

He said that it was important to protect the student letting cycle which will go some way to protect student landlords and their student tenants.

Student housing is generally cheaper

Victoria Tolmie-Loverseed, the deputy chief executive of Unipol Student homes, told the Committee that private student housing is generally cheaper than other types of student homes.

When asked about PBSA being exempt from not offering fixed term tenancies, Ms Tolmie-Loverseed said: "I agree with that exemption, I think that purpose-built student accommodation exists for a very specific purpose and therefore operators of that kind of accommodation need to be able to ensure that they are only renting to tenants, so they need to have the means to regain possession."

She went on to say that there are often planning obligations tied to the building that restrict tenures.

When asked about losing student HMO accommodation, she replied: 'I do think that is problematic' and that 700,000 students rely on student housing and they 'need it every year'.

She said: "It's an important part of the student accommodation sector."

Removal of fixed term tenure

Propertymark’s head of policy and campaigns, Timothy Douglas, told the Committee that the removal of fixed term tenure would have serious potential for unintended consequences within the student lettings market as students only look to rent properties for a short time during the academic year.

Propertymark also believes that the government must extend Ground 4A to one or more student sharers, move Student Maintenance Loans to monthly instalments, and/or allow rents in advance for student renters and others to retain access to suitable housing. 

Implications of the Renters' Rights Bill

The managing director of Accommodation for Students, Simon Thompson, said: "As a student landlord, it's crucial to understand the implications of the Renters' Rights Bill and how it could impact your business.

"While the ban on fixed-term tenancy agreements may seem daunting, there's still some way to go before this Bill becomes law."

He added: "It will be crucial for student landlords to adapt to the changing landscape and ensuring that their properties meet the evolving needs of students.

"That way they will thrive in the student housing market and play a vital role in supporting the next generation of students."