The National Residential Landlord Association (NRLA) has warned that restricting the student housing possession exemption to larger houses in multiple occupations (HMOs) could reduce supply and disrupt the student rental cycle.
The warning followed comments by Housing Minister Baroness Taylor of Stevenage in the House of Lords, who said the proposed exemption under Ground 4A for HMOs with three or more bedrooms “captures the bulk of typical students”.
Data from accommodationforstudents.com found around one-third (32%) of ‘off-street’ student housing is made up of one-bedroom and two-bedroom properties.
As drafted, Ground 4A would allow landlords to regain possession at the end of an academic year only if the property is an HMO with three or more bedrooms.
An amendment backed by Lord Willetts was put forward to cover one-bedroom and two-bedroom student homes, but the measure was not included.
The Renters’ Rights Bill removes fixed-term tenancies, making Ground 4A the main route for landlords to regain possession for the next academic year.
Without change, many landlords may leave the student sector, affecting future supply.
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.”
Beadle added: “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.”
He said: “We urge the Government to reconsider this at Report Stage and ensure all student homes – not just larger HMOs – are covered by Ground 4A.”
