Renters’ Reform Bill: Are we sleepwalking back to the past?

Has enough energy been directed by landlords and agents into drafting elements of the Renters’ Reform Bill (RRB).

I feel guilty that I had thought that greater bodies and minds than mine were working on this Bill, but recent investigation has alerted me to a type of group-think that is just trying to get the bill passed, before any new government may take over and introduce more draconian elements to it.

This is not good for the bill or the people it affects.

In this piece I am talking specifically about Houses in Multiple Occupation (HMOs) let to small to medium (three person to seven person) groups of student sharers. There are thousands of these HMO student let houses up and down the country serving a very important part of the housing industry. Over the last twenty years the standards of management and pastoral care of these properties and tenancies has increased exponentially and this specialised market, in the main, works incredibly well.

If passed as it is drafted and with the amendments tabled, the RRB significantly impacts and weakens this market. It will lead to increased rents for the students and lower standards and more damage to the properties.

I believe when drafting a bill, one should first look at what the parties involved want.

All the research is absolutely clear; students want to live in houses as a group of friends, and most importantly they, their parents, the landlords and the agents of these student HMO shared houses all want the security of knowing when the tenancy starts and ends.

As drafted, if one of a group of students in a shared student HMO (not a PBSA block) decides to drop out of university or wants to go and live with a new partner or friend or for any other reason for that matter, because the tenancy will be periodic and not for a fixed term (shorthold), they could give two months’ notice after month four to end the tenancy after only six months and the WHOLE tenancy will have to end mid-term.

Hence the advice being mooted (from lawyers, member bodies etc. not practitioners!) is that landlords will revert to room by room letting to negate this potential total loss of income.

This is a disastrous outcome and is depressing at best. If the shared student HMO model reverts to room by room letting, we will see individual periodic tenancies, locked bedroom doors, no responsibility for communal shared areas, locked kitchen cabinets, the isolation of young people who don’t know who they are living with and, who may, in the end be living with people who may not even be at university or even of the same age bracket. Three nineteen-year-old student girls could end up unwittingly living with a fifty-year-old man! sharing kitchens and bathrooms.

No one wants to see this happen. It hails a return to the old days of bedsit student letting but it appears no one has really thought it through fully. The students don’t want this, mums and dads don’t want this, landlords don’t want this, agents don’t want this, the lawyers advising landlords and agencies don’t want this, the National Union of Students can’t want this, MPs writing the RRB can’t want this. But as a result of dodgy politicking this is what has been written. This policy has dangerous unintended consequences and is directing us down the wrong path!

It is not too late! I have written to members of the House of Lords, and I urge you to do the same, to ask them to carefully consider the outcome of the Bill in this particular regard and to suggest to The House of Commons that they take a more pragmatic approach to protect this vulnerable sector of the market, and introduce a Specific Student Ground which permits fixed term, joint and several, student HMO shared student accommodation.

Simon Tyrrell is the owner of Specialist Letting 

 

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3 Comments

  1. KByfield04

    There’s no obligation to end a tenancy when a single tenant wants to leave/be replaced. Change of tenant will still be permitted. Admittedly, like now, a new contract would be granted with a minimum 6 month term attached- however any tenancy can be surrenedered at any time by mutual consent. The market will continue to work as it does and needs to- the symbiotic nature of student tenancies (tenancies aligned with term dates). Let’s not forget everyone panicked when they original proposed no minimum term at all on the side of tenants & everyone (landlrods and agents) were up in arms but given the cost & stress of moving, honestly how many people will want to move more than every 6 months without a legitimate reason?
    The more I look at the RRB the more I feel it will make very little difference to anything. The mnarket after (if implemented) will just have a few more steps and new processes but 95% of tenancies will work then as they do now if not 98%.
    The most damaging thing is S24- let them have the RRB but get this repealed, thats the greatest danger to everyone.

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  2. KByfield04

    I have been advised my comment above is factually incorrect. So be it. The legislated framework will likely change as it migrates 3 Lords resadings, amendments and assent. Much like the knee-jerk panic to the (originally proposed) no minimum term with panic tenants would move every 1-2 months- they never would- the costs, hassle, stress, etc.
    Whilst a tenant chooses to leave a joint tenancy, they (now and then) will need replacing. If fellow tenants wish to stay, they will find a replacement dn all will happily sign a new tenancy. If not, they will all leave, and a new tenancy will be placed.
    We need to consider the implications but also apply our knowledge of the real world landscape they will operate in. I personally see this as a technical change that, in real world terms, will make next to no difference (as I feel about much of the RRB).

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    1. Simon Tyrrell

      Thank you.
      I fear that part of the reason we are where we are with RRB is because there is too much misinformation being passed about, and very little ‘black box’ forensic investigation at what the reality could (and probably will) look like.
      I passionately believe that there is still room for a Specific Student Ground which gives fixed term, joint and several tenancies to HMO student properties.
      If all parties really understood the can of worms they are opening up, I am sure they too would agree.
      I would welcome your and anyone else’s help in lobbying the Lords for a change.

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