Government’s current draft of legislation does not allow landlords to regain possession of smaller student properties at end of academic year
The government’s plans to restrict a student housing legal provision to only cover larger properties will undermine supply, according to the National Residential Landlord Association (NRLA).
The concerns follow comments made by the House of Lords Housing Minister, Baroness Taylor of Stevenage, during the committee stage of the Renters’ Rights Bill on Tuesday.
She said that limiting exemption under Ground 4A, which allows landlords to regain possession of properties in line with the academic year, to houses of multiple occupation (HMOs) with three or more bedrooms “captures the bulk of typical students”.
This means that it would be unviable for owners of smaller properties to let them on the student market.
The NRLA cited data from the accommodation search engine accommodationforstudents.com, which suggests that one and two-bedroom properties account for around one-third (32%) of all ‘off-street’ student housing.
Given that the Renters’ Rights Bill abolishes fixed-term tenancies, the NRLA argued that Ground 4A provides landlords with the certainty that they will be able to guarantee possession of their property at the end of the academic year so they can let to new students.
An amendment to the draft by Lord Willetts, president of the Resolution Foundation – a think tank focused on improving living standards for those on low to middle incomes – sought to extend the ground to include one and two-bedroom student properties.
Ben Beadle, chief executive of the NRLA, said: “We welcome the Government’s recognition that supporting the student rental cycle is important, and we agree with the Minister’s comment that increasing supply is essential to stabilising rents. However, the decision to exclude one and two-bedroom student homes from Ground 4A will do the exact opposite.
“These properties make up a significant part of the student housing market and are often preferred by final-year and postgraduate students looking for quieter places to live and study…
“If landlords are not confident they can regain possession in time for the next academic year, many will stop letting to students altogether. The result will be fewer homes, higher competition, increased rents, and less choice for students.”
The government has said that limiting Ground 4A to larger HMOs will protect tenants such as part-time students and student parents, but the NRLA have responded that the rule only applies when all named tenants are full-time students, which rules out part-time students and many single parents.
It is calling on the government to reconsider the restriction at report stage.
No comments yet