Flawed possession ground will reduce supply of student housing

Government plans to restrict a key student housing exemption to larger Houses in Multiple Occupation (HMOs) could cause chaos in the student market, slashing the supply of homes, forcing rents up and throwing the annual student rental cycle into disarray.

Housing Minister, Baroness Taylor of Stevenage, told the Committee stage of the Renters’ Rights Bill that limiting the exemption under Ground 4A to HMOs with three or more bedrooms 'captures the bulk of typical students'. 

However, data from the accommodation search engine accommodationforstudents.com suggests that one- and two-bedroom properties in fact account for around one-third (32%) of all ‘off-street’ student housing.

Ground 4A, as currently drafted, allows landlords to regain possession of properties let to students in line with the academic calendar – but only where the property is an HMO with three or more bedrooms. 

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. 

Given that the Renters’ Rights Bill abolishes fixed-term tenancies, Ground 4A is crucial to providing landlords with the certainty that they will be able to guarantee possession of their property at the end of the academic year so they can let to new students. Without extending this to one- or two-bedroom properties, it will be unviable for many landlords to stay in the student housing market.

NRLA Chief Executive Ben Beadle 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.”

More information

For more information on the NRLA campaign on the Renters' Rights Bill click here.

• For more information about the process by which the Bill progresses through the House of Lords click here.   
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