Renters Rights Bill Update - Students
PDPLA friend and legal advisor, David Smith, says, "Earlier this month the Commons Bill Committee began its line by line scrutiny of the Renters' Reform Bill including amendments to each section. As anticipated, most of these amendments are being rejected....
And the rest
What was interesting was the comments by the Housing Minister, Matthew Pennycook, on student tenancies. He explicitly described the new ground 4A for student lets as a "limited carve-out", saying there was no evidence that students routinely overstay the anticipated end dates of their tenancies.
I suspected that the government was looking to protect students in one and two bed properties on the assumption that they were in some way different from other students. This seems to be correct as Pennycook specifically referred to protection for "non-typical students".
All this means that the government is unpersuaded that the student sector needs any more than they are currently offering. I doubt student landlords will leave en masse right now, after all many have already committed themselves for tenancies starting next year. But I would not assume the year after will be so rosy."
Discussion
Our old friend Andy Simpson responded, "The 1 & 2 bed issue really doesn't make any sense. These properties will no longer be able to stay in the market." and a property developer/investor added, "Don't think Mr Pennycook has worked in the real world. Yes he is a very educated man but never had what I would say is a job in the real world. His stubbornness not to compromise on the renters bill will cost student tenants in higher rents." to which Andy responded, "'d like to see data demonstrating the number of non-typical students living in 1&2 bed properties vs the total number of students living in 1&2 bed properties (about 1/5 of the student PRS). The approach appears to be subjective, without practical justification and based on gut feel."
However, not everyone sees this as an issue, Eleanor Solomon, a partner at Antony Gold Solicitors said, "Surely this is a non issue? If a student stays for more than a year whilst paying rent and still being a student, what is the problem? And how many people want to stay in student accommodation for any long period when they are not a student? Maybe I am missing something?" to which David replied, "The problem is that students want to enter into tenancies around about now for occupation next June or July so they have the certainty of accommodation in the space they want in the next study year. Landlords accommodate this but are then reliant on the previous students leaving in order to be able to fulfil this agreement. So students who stay and pay rent are not the problem as regards payment but they are a problem if there are other students expecting to occupy the same property. Ultimately that is less of a problem for the landlord than it is for the students who are expecting to move in."
As things stand, it looks as if there will be a special condition for student HMOs allowing landlords to stipulate an end of tenancy date thus allowing them to advertise for the subsequent year as they always have done but 1 and 2 bed student dwellings will have no such protection and as such, can be expected to drop out of the student market (if you cannot let them until the current tenant leaves). As always, student halls are treated separately and are unaffected by the Bill.