Renters’ Rights Bill threatens student housing supply – NRLA

The National Residential Landlords Association (NRLA) has raised the alarm over government proposals that could shrink the availability of student accommodation.

It warns that could potentially drive up rents and unsettle the annual rental cycle for university students.

During the Committee Stage of the Renters’ Rights Bill, Baroness Taylor of Stevenage, the House of Lords’ housing minister, defended a plan to confine a vital student housing exemption, known as Ground 4A, to Houses of Multiple Occupation (HMOs) with three or more bedrooms.

She claimed this would encompass ‘the bulk of typical students’.

Crucial student rental cycle

Ben Beadle, the NRLA’s chief executive, 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.”

He added: “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.”

“The government’s justification for excluding these homes is misplaced.

“We recognise the need to ensure security for part-time students, student parents and other vulnerable tenants, but excluding smaller student homes from Ground 4A does nothing to support them.”

The Bill excludes smaller homes

However, findings from accommodationforstudents.com platform reveal that one- and two-bedroom properties constitute roughly a third (32%) of off-street student residences.

And that, the NRLA warns, highlights a significant oversight in the proposed legislation.

Ground 4A currently enables landlords to reclaim properties leased to students in sync with the academic calendar, but its restriction to larger HMOs excludes smaller properties.

An amendment, championed by Lord Willetts of the Resolution Foundation and supported by a cross-party coalition of Peers, aimed to broaden this provision to include one- and two-bedroom homes.

Ground 4A is pivotal for landlords

With the Renters’ Rights Bill set to eliminate fixed-term tenancies, Ground 4A is pivotal for student landlords who need assurance that they can recover their properties at the academic year’s end to accommodate incoming students.

Mr Beadle said: “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.”

He adds: “We urge the Government to reconsider this at Report Stage and ensure all student homes – not just larger HMOs – are covered by Ground 4A.”

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