The second reading of the Renters (Reform) Bill in Parliament on 23rd October has intensified scrutiny on the challenges faced by the UK’s student renters.
Paul Blomfield, Sheffield Central MP, noted that nearly 45% of students, representing some 600,000 young people in England and Wales, reside in the private rented sector.
Yet, the current rental crisis often leaves them without suitable accommodation options.
According to Sheffield South East MP Mr Clive Betts, “Last year, Manchester students were actually being encouraged to live in Liverpool, because there was not enough housing in Manchester for them.”
Housing Hand, a UK rental guarantor service, confirmed that the accommodation challenges have been worsening. Graham Hayward, chief operating officer, said: “Universities need strong attendance, so they also need to coordinate with the various stakeholders in the accommodation supply chain, to ensure that planned student numbers can be housed appropriately. This is a market, after all, so if supply doesn’t meet demand then demand may weaken – though it will certainly increase in price until it is rebalanced.”
The Renters (Reform) Bill introduces regulatory complexities, particularly in the treatment of purpose-built student accommodation and houses in multiple occupation (HMOs).
Housing Hand warns that these challenges, combined with Brexit and Covid-related shifts in student numbers, could jeopardise the UK’s position as a global leader in higher education.
Hayward further explained: “The UK is currently regarded as a global higher education leader. That position could come under threat if all parties involved in educating and housing students cannot work together to achieve a more balanced solution.”
One sticking point in the Bill is the issue of open-ended tenancies, which could be problematic for the student accommodation market. Both students and landlords desire fixed start and end dates to tenancies.
James Maguire, head of sales and business development at Housing Hand, highlighted the regional variations in demand and supply, noting that students in cities like Manchester, London, and Bristol often have to live far from their university, which impacts their overall university experience.
Data from the Cushman & Wakefield UK Student Accommodation Report 2023 reveals that London alone has seen a surge in international student numbers by 27,495 in the past two years.
Full-time student numbers hit a record high of 2.2 million in 2021/22, according to the Higher Education Statistics Agency.
Hayward warned: “We have seen students starting their courses this autumn facing unprecedented problems in securing appropriate accommodation close to their university. Unless urgent, decisive action is taken to support landlords and make providing rental homes a more attractive proposition, that situation will only get worse.”
