Renters' Rights Bill advances to Committee Stage amid student tenancy concerns
The controversial Renters' Rights Bill has progressed to the Committee stage in the House of Lords following its second reading.
The issue of all tenancies becoming periodic, the notice period that tenants can give and the special nature of the student accommodation sector were discussed.
The Housing Minister, Baroness Taylor, told the Lords: "The government took time to ensure the Bill works for everyone, including students.
“To meet this goal, a new possession ground has been created to allow landlords renting to students in HMOs to seek possession ahead of each new academic year, facilitating the yearly cycle of short-term student tenancies.”
PBSA removed from the AST system
She continued: "To further protect the student market, private purpose-built student accommodation will be removed from the assured tenancy system in recognition of the limited market such accommodation focuses on, and the differences between purpose-built accommodation and 'off-street' private housing rented to students.
"Providers must sign up to government-approved codes of practice, which will ensure homes are safe and good quality, to be removed from the assured tenancy system."
Table amendments for student landlords
Conservative peer Baroness Scott of Bybrook said: "We intend to table amendments to address some of the most pressing concerns, including: the capacity and operation of the courts; student landlords, who need certainty of length of tenure and other mutually agreeable fixed-term contracts; some exemptions for smaller landlords, who are less able to weather these changes; the availability of insurance for damage caused by pets; consideration of the property rights of landlords; and the impact on the housing market.
"We will pursue these amendments for the benefit of landlords and tenants alike, because we know what will happen if we do not."
Exemption should extend to student landlords
Peers also suggested that student accommodation exemptions should also extend to those landlords renting one and two-bedroom flats to students.
Baroness Taylor asserted that abolishing fixed-term tenancies will simplify the system, preventing tenants from being 'trapped'.
However, several Lords expressed apprehension about the 'unintended consequences' of periodic tenancies - particularly for students.
Lord Truscott argued that most tenants favour fixed terms for security, stating: "Tenants will have less security, not more, as instead of a one or two-year tenancy, if mutually agreed, landlords will be able to give notice at any time, up to four months if reoccupying or selling their property.
"Why cannot reasonable people agree a fixed term, with a break clause if required? Incidentally, the majority of tenants want fixed-term tenancies."
Amendments to support student renters
Propertymarks' head of policy and campaigns, Timothy Douglas, said: "As anticipated, members of the House of Lords delved into the detail of the Renters' Rights Bill and discussed the intended and unintended consequences it will bring.
"Disappointingly, some Peers have fallen into the trap of not understanding the costs and taxes impacting landlords and seeing rent control as an additional measure to tackle affordability issues in the private rented sector.
"Similar policies have failed in Scotland and must be, at all costs, avoided by the UK government."
He added: "Sensible amendments were talked about to support student renters, much needed clarity on court reform and the implementation timeline, tackling short term lets and local authority funding as well as practical application of the grounds and amending deposit rules to allow more tenants to rent with pets.
"These are the areas that the UK government must focus their attention during the remaining stages of the Bill."
Possession ground for student HMOs
Simon Thompson, the managing director of Accommodation for Students, said: "While the introduction of a specific possession ground for student HMOs, the broader implications of the Bill remain uncertain.
"The potential abolition of fixed-term tenancies raises concerns about security and predictability since fixed-term agreements provide a framework that works for both students and landlords."
He added: "Moving away from that model risks introducing instability into the market."
"A balanced approach is crucial, one that protects tenant rights while ensuring the continued viability of the student rental sector."
More information
The House of Lords library has published a briefing paper on the Renters’ Rights Bill - which many student landlords might find useful.
