Renters’ Rights Bill could add to student housing shortages

According to Times Higher Education, new legislation introduced in the Renters’ Rights Bill could add to growing pressures on the student housing market.

In recent years, students have become more dependent on the private rented sector (PRS) for accommodation. The Renters’ Rights Bill intends to ban ‘no-fault’ Section 21 evictions and fixed-term tenancies, meaning a tenancy can be ended with two months’ notice.

If the Bill passes, it could make it more difficult for landlords to operate in the student market. The student rental market relies heavily on fixed-term agreements to ensure properties are available in line with the academic year. The Renters’ Rights Bill could mean that landlords face unexpected voids, particularly if students choose to end their tenancies immediately after exams. This would make students less attractive tenants compared to others within the PRS. 

As students are already facing a housing crisis, removing a significant number of student homes available within the PRS would only compound an existing problem.

Tom Walker, co-founder and Director of StuRents, says, ‘The fixed-term tenancies that many landlords and letting agents will start signing with students in the next month or so for tenancies starting next academic year will be impacted, something the majority of student property managers are unaware of and unprepared for.’ 

‘Some people are concerned that there will be a mass exodus of landlords providing student homes.’

However, Walker believes that the HMO market will remain resilient. Recent figures show an increase in the number of students living in the private rental sector. HESA data reveals that 42% of accommodation demand among new students in 2022-23 was for HMOs, up from 32% in 2021-22 and 24% in 2017-18.

Read the full story on Times Higher Education.