Landlord group proposes new student tenancy agreement

A group representing landlords is proposing a new type of tenancy agreement specifically for student accommodation. 

iHowz is concerned that proposed changes to tenancy laws could create uncertainty for both landlords and tenants in the student housing sector. 

It warns that under the Renters' Rights Bill, the move to periodic tenancies and two-month notice periods could disrupt shared living arrangements. 

That would see student tenants struggling in a property should someone leave. 

Landlord and tenants work together 

An iHowz spokesperson said: "Currently, all the tenants are bound to a fixed term, and if one wishes to leave the landlord and tenants work together to ensure any replacement is mutual to all parties. 

"If we change to granting individual room agreements, the tenants will lose control of their fellow occupants." 

iHowz is particularly critical of the exemption of purpose-built student accommodation (PBSA) from the proposed changes. 

The spokesperson added: "The Renters' Rights Bill doesn't allow for the fact that is frequently insufficient accommodation in the PBSA, and that rents are frequently more expensive than the private rented sector." 

Teaching essential life skills 

For many students, iHowz says, the transition to higher education marks a pivotal moment for young people - often involving their first experience of living away from home.  

Shared housing provides invaluable opportunities for personal growth, teaching essential life skills such as budgeting, compromise and conflict resolution.  

Also, the unique dynamics of student housing foster a sense of community and camaraderie among tenants.  

Students typically prefer to be involved in selecting replacements for departing housemates and often seek fixed-term contracts aligned with academic calendars, typically spanning from September/October to June. 

Scheme does not require altering 

The spokesperson said: "All these requirements can be met under the current scheme, that has worked well for many years, and, in the opinion of iHowz, does not require altering. 

"iHowz propose a new student shorthold tenancy (SST) tailored to meet the unique needs of student renters, addressing flexibility, fairness, and safety concerns." 

They add: "This proposed SST would allow for fixed-term agreements that align with academic schedules, providing students guaranteed accommodation for the academic year or term while giving them a more practical commitment timeframe - starting early in the calendar year, rather than the previous December." 

Proposed student shorthold tenancy 

Key features of the proposed student shorthold tenancy include: 

• Clear start and end dates: Ensuring students have secure accommodation for the academic year or term 

• Flexible commitment: Allowing students to sign contracts early in the calendar year, rather than the previous December 

• Safety protections: Empowering tenants to terminate tenancies if landlords fail to address serious health and safety issues 

• Landlord accreditation: Requiring landlords to meet specific standards for student accommodation. 

The iHowz spokesperson explains: "If a landlord does not meet these accreditation standards, they would only be able to offer a standard assured tenancy, as outlined in the Renters' Rights Bill." 

Changes for Council Tax liability 

The landlord group also raises concerns about the proposed changes for Council Tax liability.  

Currently, Council Tax is the responsibility of the tenant if they hold a tenancy of six months or more.  

However, the new legislation could shift this burden onto landlords, potentially increasing their costs. 

iHowz is urging policymakers to carefully consider the implications of these changes for the student housing sector and to ensure that the new regulations adequately address the specific needs of students and landlords alike. 

Significant challenges for student landlords 

The managing director of Accommodation for Students, Simon Thompson, said: "The proposed move to periodic tenancies and two-month notice periods will create significant challenges for student landlords. 

"It could lead to increased void periods, making it difficult to plan for maintenance and future lettings." 

He says there must be a more nuanced approach to student lettings and welcomed the iHowz proposal for a specific student tenancy agreement. 

Mr Thompson said: "A student-specific tenancy agreement could help to mitigate the risks associated with the Renters' Reform Bill and ensure a stable and sustainable rental market for students - and landlords."