The student’s guide to the Renters’ Rights Bill
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The Renters’ Rights Bill is in the process of passing through Parliament and is currently in the Committee Stage where the specific clauses will be examined in more detail before it can progress.
If the Bill continues on its current trajectory, it is set to pass in the summer of 2025.
What is the Renters’ Rights Bill?
The Renters’ Rights Bill was put forward by the current Labour government with the goal of ensuring that all tenants can live ‘in a decent, safe and affordable home’. The Bill outlines significant legislative changes that aim to overhaul the private rental sector and strengthen tenant protections.
What does the Renters’ Rights Bill mean for student tenants?
Although the Bill has not yet passed, there has already been significant discussion about how the suggested changes might affect the student accommodation sector.
It’s not just student landlords who should be aware of what’s to come. As student renters, it’s important that you understand your rights and how the legislation might impact you, both positively and negatively. To help, we’re breaking down the key elements of the Renters’ Rights Bill that affect student tenants.
HMO-only
It looks likely that the Renters’ Rights Bill will only apply to the HMO market. An HMO is a ‘house in multiple occupation’: a shared property with three or more tenants from more than one household.
Most of the sector expects purpose built student accommodation (PBSA) to be exempt from the Bill’s measures. As things stand, there is some uncertainty about the Bill’s wording of the exemption for PBSA but with groups such as Student Accredited Private Rental Sector (or SAPRS) already calling for clarity, in all likelihood PBSA will be exempt from the changes by the time the Bill passes.
In other words, if you live in a privately rented shared student house (or HMO) you need to be aware of the changes the Renters’ Rights Bill will bring. If you live in purpose built student accommodation, you will probably not be affected.
End of bidding wars
The Renters’ Rights Bill will make it compulsory for landlords to publish an asking rate for their property and will ban landlords from accepting offers above this marketed rental price. In cities with an undersupply of student housing, this will stop bidding wars driving up the cost of properties.
2-month notice to end tenancy
The Renters’ Rights Bill will get rid of fixed-term tenancies and make all tenancies periodic or ‘rolling’ immediately. This means that your tenancy will continue until either you or the landlord serve notice.
Tenants will be able to serve two months notice at any point to end the tenancy. This could be a benefit as you won’t be locked in for a full year if you’re not happy. However, if any tenant serves this notice, it will end the tenancy for all tenants in the property. This could cause issues for groups of students renting together if only one tenant wants to leave the tenancy.
Restrictions around rental increases
According to Deputy Prime Minister, Angela Rayner, The Renters’ Rights Bill intends to ‘empower tenants to challenge unfair rent increases designed to drive them out’. Landlords will only be allowed to increase the rent once per year and prescribed increases cannot be written into the contract. If your landlord does want to implement a rent increase, they will need to communicate it to you officially using a section 13 notice, which offers a two-month notice period.
Increases must be in line with the current market rate. If your landlord suggests a rent increase that you or your housemates deem to be above market rate, you can challenge it in the First-Tier Tribunal.
Changes to rent payments
The Renters’ Rights Bill intends to limit rent instalments to one month’s rent (meaning you will need to pay your rent each month rather than termly or upfront). This means you’ll need to be more careful when budgeting each term as you’ll need to make rent payments before maintenance loan instalments are paid out.
The Bill also intends to extend the grace period given to tenants for significant rent arrears to three months. After three months of unpaid rent, your landlord will be able to issue a section 8 notice, which is a four week notice period leading to eviction.
Although the Bill is extending the amount of time you can legally be in rent arrears before eviction, it’s not a good idea to fall behind on your rent payments. If you’re struggling with your budget, make sure to speak to your university’s financial advice team for support or seek free advice from registered debt charities.
New Ground to allow landlords to regain possession
Ground 4a of the Renters’ Rights Bill is designed to allow student landlords to regain possession of their properties to align with the academic year. The property must be a student HMO (so houses with 3 or fewer tenants or houses where not all the tenants are students will not benefit from Ground 4a).
The repossession notice period is four months and must take effect between 1 June and 30 September to align properly with the UK university academic calendar. Your landlord needs to inform you and your housemates of their intention to seek repossession between June and September when you sign your tenancy agreement. When they then seek repossession, your landlord must let the property to students or ‘to people who the landlord reasonably believes will become full-time students during the tenancy’. If these requirements are not met, you will be able to challenge the repossession of the property.
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