How does the Renters’ Rights Bill impact Student Lets?

The Renters’ Rights Bill, introduced on 11 September 2024, proposes changes intended to enhance security and stability for renters by abolishing Section 21 'no-fault' evictions.

However, it raises significant concerns for student landlords and the broader student rental market, especially due to the cyclical nature of student tenancies and the potential for increased void periods.

Here’s a breakdown of key aspects relevant to student landlords:

Addressing key concerns

The Bill partly addresses the need for an annual student lettings cycle by:

1. Allowing universities to continue relying on exemptions under the Housing Act 1988 for specified educational institution lettings.

2. Introducing a mandatory ground for possession (ground 4), enabling student housing providers to re-let properties temporarily, e.g. for summer conferences.

3. Exempting Purpose-Built Student Accommodation (PBSA) from the Bill’s changes, allowing these tenancies to operate under the Protection from Eviction Act 1977.

4. Offering an HMO provision (ground 4A) for landlords to repossess student-let HMOs on an annual basis to relet to other full-time students, with prior written notice required.

Concerns regarding void periods and income gaps

Despite some measures, the Bill does pose challenges in terms of potential income voids:

1. Shortened notice periods: The revised two-month notice for ending periodic tenancies might mean students could vacate soon after exams, resulting in unoccupied periods during the summer.

2. Mid-year voids: Students dropping out early in the academic year could leave properties empty, especially for HMOs, until the next intake.

Potential impacts on the student rental market

These changes could:

• Prompt landlords to raise rents to offset anticipated void risks or shift to other rental markets with less cyclical demand, thereby limiting available student housing.
• Increase overall housing costs for students if the availability of student-appropriate housing decreases in response to these regulatory shifts.

For universities and students, this could mean higher rental costs and increased competition for limited housing options, especially as landlords weigh the challenges posed by shorter tenancies against stable academic cycles.

We have over twenty years’ experience in the student let market and have worked with many landlords who value our dedicated and in-depth knowledge of this sector.

‘Andrews are like an additional member of my team. I've used other agents and been disappointed, this is not the case with Andrews who are proactive and keep me up to date. They now manage my student HMO’s and they go above and beyond to help.’

- Student Landlord, Cheltenham

To find out how we can help you with your student let contact our dedicated Lettings New Business Partners.