The Government has released its Rental Reform White Paper and predictably there is a major focus on the proposed abolition of S21 notices and the plan to make the Decent and Safe Homes standard apply to the Private Rented Sector (PRS).
However, for those who operate in the student PRS market, the biggest change will be the abolition of fixed term tenancies and the wholesale move to periodic agreements. The Government is planning on moving all new and existing tenancies to periodic agreements where the tenant will be able to give two months’ notice to quit. No corresponding right will exist for the landlord and they will have to rely on the current mandatory grounds albeit, there is a plan to beef some of these possession grounds up, particularly with regards to rent arrears.
The student market is very different to the regular PRS market and works on the basis of fixed term tenancies where there is a defined start and stop date, which is directly linked to University terms. If tenants are able to give two months’ notice, the likelihood of most landlords being able to rent to students for anything even approaching a calendar year will be fairly low. If the student tenant should give notice, the chance of renting to another student becomes increasingly difficult as the academic term wears on and particular so over the summer. Importantly, there will be no guarantee that the property will be available to rent at the start of the normal termly cycle in September which will make any type of planning extremely difficult for student landlords and agents.
Whilst we should welcome improvements to housing standards, the likely impact of an end to fixed term tenancies in the student market will be devasting and lead to a major contraction of student PRS homes to rent. Interestingly, Purpose Built Student Accommodation (PBSA) has been specifically exempted from these provisions in the White Paper.
This will restrict choice and will mean increased costs for students due to the significant price differential between PBSA and the student PRS.
The government white paper can be found here – https://www.gov.uk/government/publications/a-fairer-private-rented-sector/a-fairer-private-rented-sector.
About Sulets
Sulets is a not-for-profit, charitable trust providing high quality accommodation for students in Leicester with almost 2500 beds. The charity can keep letting costs for students affordable due to no hidden charges, and all surpluses being reinvested back into the charity. Sulets’ mission is to raise standards in accommodation for the students of Leicester. To be honest, transparent, and fair in our actions and to enhance the student experience.
