Plans to restrict a key student housing exemption to larger Houses of Multiple Occupation (HMOs) risk undermining supply and disrupting the annual student rental cycle, the National Residential Landlord Association (NRLA) has warned.
In the upcoming Renters’ Rights Bill fixed term tenancies are being abolished, though student accommodation providers can get an exemption – but only when the property is an HMO with over three people.
This is despite accommodation search engine accommodationforstudents.com suggesting that one- and two-bedroom properties account for around one-third (32%) of all ‘off-street’ student housing.
House of Lords Housing Minister, Baroness Taylor of Stevenage, argued in the House of Lords on Tuesday that limiting the exemption under Ground 4A to HMOs with three or more bedrooms “captures the bulk of typical students”.
An amendment proposed by Lord Willetts, president of the Resolution Foundation, that was backed by a cross-party group of Peers, sought to extend this ground to include one- and two-bedroom student properties.
Ben Beadle, chief executive of the NRLA, 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.
“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.
“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.
“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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