The government’s plans to reform the rental market threaten to cause widespread uncertainty across the sector, particularly when it comes to student housing, with a reduced volume of units likely to be available at start of each academic year, warns the National Residential Landlords Association (NRLA).
Under the plans proposed all student housing, with the exception of purpose-built blocks, will be subject to open-ended tenancies. This move means landlords are unable to guarantee that accommodation will be available for the start of each academic year, unless sitting tenants have handed in their notice to leave. Students looking for housing will be unable to plan in advance where they want to live and with whom they want to live.
New data from NRLA reveals that 84% of landlords renting to students are concerned about the government’s plans.
According to official data, over a half – 53% – of students in the UK in rental properties do not live in halls of residence or other university provided accommodation.
With the government having made clear that private purpose-built student accommodation will be exempt from plans to make every tenancy open ended, the NRLA has called for the same to be applied to all types of student housing at a roundtable meeting with the minister.
Under the NRLA’s proposals student landlords would be able to repossess a property with two months’ notice where it is required for new students each year. To provide protections, the earliest such notice could be served to sitting tenants would be in the last two months of a tenancy agreement, or at the 10th month of a 12-month fixed term.
Ben Beadle, chief executive of the NRLA, said: “The student housing market works unlike any other, operating from one academic year to the next. It is common sense that landlords should have certainty that accommodation can be made available for new students each year, as has already been reflected for the Purpose-Built Student Accommodation sector
“Without changes the government risk causing chaos, confusion and anxiety for students unable to plan where they live for the start of each academic year.”
It’s working so let’s change things seems to be the motto, utter madness but does anything surprise us anymore ?
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Headline: Actually the Government has, in recent years, done nothing but cause chaos in the housing market by demonising and driving investors out of the market with the aid of Shelter, Generation Rent and the like. Welcome to the Chaos they have caused if you are a renter. Thank you for driving up rents, thank you for giving me a larger pool of tenants to choose from when I need a new tenant, thank you for reducing my void periods, thank you for encouraging my absolutely wonderful and treasured tenants to stay longer. Also thank you for encouraging me to sell up some of my portfolio to encourage me to retire and buy a holiday home abroad sooner rather than later giving me more time to enjoy life; whereas I was more likely to have kept investing. Merry Christmas to all.
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The end is nigh.
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