Government considering possession ground for student lets
A possession ground allowing student landlords to take back their properties at the end of an academic year could be in the pipeline.
Housing Minister Rachel Maclean MP has confirmed the Government is considering developing a ground that would guarantee vacant possession to let to students at the start of each academic year, following a campaign by the NRLA.
The news came ahead of a roundtable on student lets today (Thursday) in which NRLA Chief Executive, Ben Beadle, and Head of Policy, James Wood, were joined by sector stakeholders, including Universities UK and Unipol, to discuss the future of student letting in relation to the Government’s Renters’ Reform Bill.
The recently published Bill outlined proposals to end most fixed-term tenancies, including those currently offered to students in the private rented sector to cover the academic year.
The Government claims the move will bring students’ rights in line with other tenants, however student landlords argue that introducing indefinite periodic tenancies will render their business models unworkable, making it near-impossible to operate in the market.
The NRLA believes this will undermine the proper functioning of the student housing market and cast a shadow of uncertainty over the future availability of student accommodation, despite many towns and cities already struggling to house their student populations.
This argument is backed by figures from the University and Colleges Admissions Service (UCAS) which said that by 2030 there could be a million higher education applicants in a single year – a quarter of a million higher than today’s figures.
And in Scotland, where similar changes have already been implemented, there has been an exodus of landlords from the student sector, with many universities declaring a student housing crisis and some students unable to take up sought after places as they have nowhere to live.
What does the NRLA want?
The NRLA argues that to ensure there are sufficient homes for students, amendments to the Renters (Reform) Bill must include:
• A mandatory, prior notice ground for possession giving two months’ notice that can be served no earlier than the 9th month of a tenancy where a landlord has let to students in the preceding 12 months.
• A moratorium (temporary ban) on tenants serving notice, after which two months’ notice to end the tenancy can be given at any time.
These changes, it believes, are vital to safeguard the availability of student housing for the future.
Planning argument
The NRLA has also written to Rachel Maclean MP in the wake of comments she made in a letter to fellow MP Anneliese Dodds about Purpose Built Student Accommodation (PBSA) being subject to planning restrictions meaning they can only be let to students.
In the letter the NRLA has pointed out there are similar restrictions on student housing in the private sector which can make it difficult for landlords to move back into the student lettings business once they have left.
The letter, from NRLA Chief Executive Ben Beadle, said: “It is important to note that many houses of multiple occupation rented to students are also subject to planning restrictions as a result of Article 4 Directions.
“As the Department will be aware, where an HMO (known as a C4 Class) is rented out in an area covered by such a Direction, landlords may not let to a family (C3 Class) without losing the right to let the property to students later on.
“Realistically, this means that where students leave during the academic year, landlords will be faced with a choice between substantial losses from extended void periods or taking the property out of the student housing market.”
He goes on to outline the NRLA’s calls on student housing as and the potentially devastating impact of doing nothing.
More information
The NRLA has a suite of resources to keep members up-to-date with the Bill, including a selection of FAQs. To visit the member-only hub click here.
We would also advise you to keep a close eye on our news site and social media channels where we will provide regular updates on all the latest developments.
