Minister defends Renters’ Rights Act reforms for student rental market

The government has claimed it engaged with the student sector while developing the Renters’ Rights Act, despite industry experts warning the reforms could leave students worse off.

In a written parliamentary answer, Housing Minister Matthew Pennycook said the legislation was developed following “extensive” engagement with the sector.

Under the Renters’ Rights Act, all fixed-term tenancies are abolished, which particularly impacts the student rental market.

Engaged extensively with the student rental market

Labour MP Jayne Kirkham asked the government: “What assessment have they made of the potential impact of the change in the Renters’ Rights Act from fixed-term tenancies to rolling, periodic tenancies on student HMO landlords.

In response, Mr Pennycook said: “My Department engaged extensively with the student sector when developing the Renters’ Rights Act and its Impact Assessment received a green rating from the Regulatory Policy Committee (RPC).

“We continue to monitor trends across the private rented sector and are conducting a robust evaluation of the impact of the act. Evaluation reports will be published two and five years after implementation.”

More mixed picture

However, as previously reported by Property118, a closer look at the Regulatory Policy Committee’s (RPC) assessment reveals a more mixed picture. While the Renters’ Rights Act was rated overall as “fit for purpose,” several sections, including those on wider impacts and the cost-benefit analysis, were given only a “weak” rating.

In its report, the RPC criticised the government for failing to properly consider the costs the bill will impose on landlords.

It warned: “The impact assessment has not adequately considered the potential costs, as well as impact upon the quality of private rental housing, of making the PRS market more illiquid.

“For example, if landlords are less able to evict tenants (as a result of the abolishment of section 21 evictions), as well as less able to invest in the quality of the property to compete in the market and attract higher rents, then it is likely that these landlords would only invest to the minimum regulatory standard and quality of the rental housing stock could fall, which must be considered alongside the growing need for new, in particular affordable, housing.”