Renters’ Reform Bill creates a ‘purposefully uneven playing field in student rental market’

Renters’ Reform Bill creates a ‘purposefully uneven playing field in student rental market’

0:01 AM, 19th September 2023, About 7 months ago 10

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As Freshers week begins for thousands of students, one association is warning of the effects the Renters Reform Bill will have on the student rental market.

York’s Residential Landlord Association (YRLA) warns that there are massive shortages in the student accommodation sector.

According to the association, in York, purpose-built student accommodation only accommodates 30-35% of students while the PRS houses more than 50%.

Students will suffer

The YRLA says it is unfair that purpose-built student accommodation (PBSA) will still be able to grant fixed-term tenancies.

In a statement, the association said: “The Bill creates a purposefully uneven playing field. The PBSA sector who have signed up to the Unipol Code of Practice will be permitted to exempt themselves from the Bill and grant fixed-term tenancies.

“PRS landlords, even those signed up to the Unipol code, will not. There is no justifiable reason for this approach. There is no evidence of lesser quality or standards in the student PRS as compared to PBSA.”

The group argues that landlords in the PRS could sign up for a similar code.

“Ultimately, it is likely to be students who will suffer as they will be confused by the difference between accommodation in PBSA which will be for a fixed term with no notice requirement and accommodation in the PRS which will require them to give two months’ notice, or they will continue to be liable for the rent.”

Unrealistic and unfair

The group warns that landlords will not be able to guarantee student accommodation for the next academic year which leaves thousands of students in limbo looking for places to live.

The YLA said: “The loss of fixed term tenancies in the Bill will effectively destroy the current arrangement between students and PRS landlords.

“As the Bill stands, landlords will have no certainty that students are going to leave on any specific date unless those students have given two months’ notice of their intention to do so.”

The YLA added: “This is a stressful time for students when they will be preparing for or taking part in exams. What seems like a simple administrative activity will therefore not take place as intended as this will not be a priority for outgoing students heading towards exams.

“Without that certainty, landlords will be unable to accede to student’s desires to enter into a tenancy. Indeed, they are unlikely to be in a position to do so until April in each year at the earliest, assuming notice is received from the outgoing students.

“Similarly, incoming students will be busy with exams of their own and expecting them to identify and enter into a tenancy for a rental property, often for the first time, alongside these pressures is unrealistic and unfair.”


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Comments

Peter Jennings

10:33 AM, 19th September 2023, About 7 months ago

Am I correct in assuming that Joint Tenancies will continue to exist in HMOs ie 5, 6 or 7 students signing up as a group tenant? If so, presumably unless the group as a whole give notice to leave, individuals that want to leave before the others will have to replace themselves or continue to pay their part of the house rent?

Yvonne Francis

10:55 AM, 19th September 2023, About 7 months ago

Reply to the comment left by Peter Jennings at 19/09/2023 - 10:33
I'm sure you will be able to have joint tenancies but in law if one gives notice the rest would have to leave too. If the remaining tenants wish to stay on, and find a replacement, and the landlord agrees, that's another matter and a new lease would have to be signed. However the great problem with the RRB, as there is no fixed term tenancy, the remaining tenants will not be under any obligation to stay.

Stella

10:59 AM, 19th September 2023, About 7 months ago

It is not only student landlords that will suffer with this bill.

We will have empty properties every time tenants decide to take long holidays for example at Christmas when people go abroad to visit families especially in the building industry where they take at least a month off.

They will just give notice and save on the rent and it could be a few months before the market picks up enough to rent that property again.

Each time the landlord will loose out and to just talk about the student market having problems is not a fair representation.

Peter Jennings

11:27 AM, 19th September 2023, About 7 months ago

Reply to the comment left by Yvonne Francis at 19/09/2023 - 10:55
Hi Yvonne. How sure are you about this? When you say 'in law if one gives notice the rest would have to leave too', is that currently the situation with a periodic group tenancy, which of course all post-RRB tenancies would be?
How can student landlords mitigate the risk of huge 3 month void periods per year? Ideas welcome 🙂

Yvonne Francis

11:57 AM, 19th September 2023, About 7 months ago

Reply to the comment left by Peter Jennings at 19/09/2023 - 11:27
Hi Peter, Its the law. Look it up on Google. The only idea I've heard of is consider they will leave approximatly three months earlier than if you had a fixed term so charge them as much as you would have for 52 weeks for 39 weeks. ie. a rent of £120pppw would be £160pppw.

Even with this you don't know exactly know when they will leave. I have written to Micheal Gove and they have confirmed they are working on some way of being able get students out some time after their course has ended. This would help because it would mean one could sign up new students for the following academic year as early as we used to. However this is very uncertain. Its a complete mess for student landlords. I don't mind confessing it worries me to death.

Luke P

12:05 PM, 19th September 2023, About 7 months ago

Reply to the comment left by Peter Jennings at 19/09/2023 - 11:27
Outside of the fixed term, one tenant can give notice for all. But the RRB will do away with fixed term tenancies, so....

JB

12:33 PM, 19th September 2023, About 7 months ago

So if one student doesn t like the course he/she can give notice to leave in the 1st term and scupper the other studenats accommodation

Luke P

12:44 PM, 19th September 2023, About 7 months ago

Reply to the comment left by JB at 19/09/2023 - 12:33
It would seem so, yes.

Teessider

13:08 PM, 19th September 2023, About 7 months ago

Reply to the comment left by JB at 19/09/2023 - 12:33If the (assured shorthold) tenancy is periodic, then yes. The RRB hasn’t got anywhere near being passed. It will be well in to the Labour government before it gets anywhere near legislation.

Rodders H

22:23 PM, 30th September 2023, About 7 months ago

This is not right.

It's the same with councils and housing associations. The rules don't apply to them.

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