Renters’ Rights Bill will shrink the student rental market, warns Propertymark

An industry body warns the Renters’ Rights Bill will have huge consequences for students and cause supply to plummet.

Research by Propertymark reveals many student landlords are worried about the abolition of fixed-term tenancies.

Propertymark also says banning rent in advance will discriminate against international students, as many rely on upfront payments to secure accommodation

Renters’ Rights Bill could shrink the student rental sector

A Propertymark landlord based in London says the abolition of fixed-term tenancies will cause chaos in the student lettings market.

The landlord said: “Many tenants move on after two or three years. I have people who are mobile, and most of these people move in during the summer months now.

“My rents can be as competitive as possible, but if tenants can leave at any point, many will not relocate in December when the new university semester begins. This will lead to much longer void periods where rooms or properties are empty, forcing rents to go up.”

The landlord adds that fixed-term tenancies should be retained for students and warns rents will surge if they are scrapped.

“Even after the first year, students typically stay for one year at a time, and the landlord cannot sell or move anyone in. If I have to offer periodic tenancies, I won’t be able to tell future students when units will be available.

“There must be a 12-month fixed term. If I let to a student in December and they leave in May or June, I’ll face a four-month void period. In that case, I won’t rent to another student, and rents will have to rise.”

Another landlord told Propertymark that if fixed-term tenancies are removed, the financial burden on landlords will increase.

The landlord said: “Landlords already shoulder large costs, especially when tenants change frequently, covering agent fees, check-out fees, inventory fees, and cleaning costs. This could push some properties out of the student rental market, reducing supply.

“The Renters’ Rights Bill could further shrink the student rental sector, as landlords would have no guarantee that their flats would be available to rent at the start of the academic year. Many landlords may leave the market due to increased risks, further reducing supply and pushing up rents for students.”

Inadvertently discriminate against international students

Sophie Lang, ARLA Propertymark executive for Cornwall with 15 years’ lettings experience, specialising in student lettings, highlighted that in her own Homes in Multiple Occupation (HMO) portfolio, 11% of properties are currently listed for sale as landlords begin to exit the market in response to the proposed reforms.

Ms Lang says the plan to ban rent in advance will have a huge consequence on international students.

She said: “The proposed changes will inadvertently discriminate against international students. Many rely on grants or scholarships from their home countries to pay rent upfront, a practice that may no longer be permissible under the new framework.

“This restriction could funnel international students toward more expensive purpose-built student accommodation (PBSA), significantly increasing their cost of living.”

She adds: “The (Renters’ Rights) Bill could have far-reaching social consequences. In cities like Bristol, where the student housing crisis is already acute, students are being placed in accommodation as far away as Newport, a one-hour train journey, due to a shortage of local housing.

“The risk is clear: reduced access to affordable accommodation could hinder some young people’s ability to attend university at all.”

Slash choices for tenants

Propertymark says they have warned the Labour government that the government’s proposal to cap advance payments at one month’s rent and prevent rent in advance from being taken prior to the signing of a tenancy will slash choices for tenants.

They warned that a one-size-fits-all policy will result in some tenants not accessing the market.

Propertymark also suggests that the Labour government extend the proposed new ground for eviction (Ground 4A), which allows landlords to evict students after they graduate, to apply to properties with one or more students.

Propertymark adds that the Labour government must look at the considerable number of landlords leaving the market and maintain private student accommodation.

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