Renters’ Rights Bill Committee Stage: Student Housing Impact

On 22 October, the Renters’ Rights Bill entered the Committee Stage, where the Bill will undergo ‘legislative scrutiny’. The 17 MPs on the Committee are currently in the process of gathering written evidence from those with relevant expertise and hearing witness testimony in person. The Committee is currently scheduled to report by 28 November. 

Concern about the Renters’ Rights Bill’s handling of student accommodation prior to the Committee Stage

As the Renters’ Rights Bill has begun to progress through Parliament, stakeholders have raised concerns about how the student accommodation market might be affected. During the Second Reading of the Bill, Liberal Democrat MP, Gideon Amos, warned that the reforms could cause ‘significant withdrawal of student housing from the market’, while Conservative MP, David Simmonds, argued for the need to ensure ‘appropriate flexibility in respect of student properties’.

Student Accredited Private Rental Sector (SAPRS), a group of student accommodation landlords believe that the Bill ‘does not recognise the unique structure of the student housing market and therefore fails to adequately deliver for students and student landlords’. 

They are calling the Government to amend the Bill to ensure private student housing and PBSA receive the same treatment. They drew on StuRents data, which reported that the student accommodation sector will already face a 490,000 bed shortfall by 2026. They feel that if the Bill is not amended, it will lead to the withdrawal of more stock from the sector and ‘students will suffer’.



Student accommodation discussion during the Renters’ Rights Bill Committee Stage

On 22 October, Victoria Tolmie-Loverseed, Deputy Chief Executive & Company Secretary at Unipol Student Homes, gave evidence to the Committee. Unipol is a not-for-profit student housing charity providing assistance, advice and support to students looking for accommodation. Tolmie-Loverseed offered insight into how the Renters’ Rights Bill might impact the student housing sector and the potential complexities and challenges the Bill might present for student tenants, landlords, and stakeholders. 

We’re providing a breakdown of the key points and takeaways discussed at this early point of the Committee Stage.

PBSA exemption is necessary

The Renters’ Rights Bill is set to make purpose built student accommodation (PBSA) exempt from the move to periodic tenancies and other legislative measures outlined in the Bill, although there is still some debate over the exact wording of the exemption. 

Tolmie-Loverseed agrees that the PBSA exemption is necessary as PBSA operators must be able to regain possession of their properties. If students were able to stay in PBSA for an indefinite period, then eventually you could have non-students living in the property which would be problematic for operators.

Fears about losing HMO stock

Tolmie-Loverseed cited that around 700,000 students currently rely on the HMO market each year. She argues that this stock is essential as it offers a more affordable alternative to PBSA which is also available at the start of each academic year when students need it. She expressed concern that the Renters’ Rights Bill could lead to a withdrawal of HMO stock from the market or an increase in rents that would leave students with lower budgets without viable housing options. 

‘Special treatment’ for students

‘Student housing has a very specific function. There are certain practices and elements that need special attention,’ says Tolmie-Loverseed. ‘We think [students] need special treatment within the Bill.’

Unipol suggests creating a specific fixed-term student tenancy which would allow landlords to regain possession of their properties when necessary, but also cater to the specific needs of students. 

In particular, she highlighted the growing issue of early renting due to student accommodation shortages and the increasing pressure to get ahead of the market. To counter this issue, she suggested introducing a ‘cooling-off period’ which would allow students to cancel up to four months before the tenancy starts. She expressed confidence that the properties would still be let but this would remove the advantage for student landlords that encourages them to engage in early renting practices. 

She also suggested adding more flexibility into the possession framework for non-traditional students like those doing Masters or PhDs. This would allow them to give notice at different points in the year.

Problematic exclusion of one and two-bed properties from Ground 4a 

Tolmie-Loverseed notes that while Ground 4a is helpful for HMOs, it excludes one and two-bedroom properties, which could result in the loss of smaller student properties from the student housing sector.

Matthew Pennycook argued that Labour has already tried to narrow Ground 4a to capture the ‘typical student’. Tolmie-Loverseed rejected the implication that only mature students live in one or two-bed off-street properties. She cited third-party data from a student accommodation listings platform stating that 31% of the properties they list are one and two-bedroom off-street properties, equating to a significant proportion of the market. Losing this stock to the professional market would be problematic.

Impact assessment into student housing 

Tolmie-Loverseed asserted that if landlords perceive more risk due to tenants being able to provide two months’ notice, then they will naturally put up rents. She would like the Government to do an impact assessment on the student market, looking particularly at Scotland and cases of student homelessness there. 

Problems with terminating joint tenancies 

About half of all student tenancies currently operate on a joint basis. Tolmie-Loverseed expressed concern that joint tenancies could be disrupted if one tenant leaves, causing the tenancy to be terminated for all. She thinks that student landlords will seek to actively manage this process and find a solution unless it is actively within their interests to regain possession of the property. She felt that the only way around this issue which would properly protect all parties would be to have a fixed-term tenancy for the student market. 

Get ready for the Renters’ Rights Bill changes 

Are you ready for the legislative changes the Renters’ Rights Bill will bring? Download our checklist to gain further insights into how the proposed reforms will affect the student accommodation sector and find out how you can best prepare.