Results day warning as thousands of student homes at risk

Thousands of student homes could be lost from the rental market, with potentially disastrous consequences for generations of students – including those celebrating their A-levels today. 

Unless MPs back a key House of Lords amendment to the Renters’ Rights Bill next month, students across the country could see their chances of renting a home in their chosen university town or city dwindle – with those from disadvantaged backgrounds hit hardest.  

We have joined forces with leading student organisations to issue the warning  over Government plans to exclude one- and two-bedroom student homes from Ground 4A, the Section 8 ground which will allow student landlords to regain possession of their properties at the end of the academic year to ensure they are available for the next year’s cohort of students. 

As students across the country pick up their A-level results today, we have written to the Housing Minister and Higher Education Minister pressing for action, urging them to support the Lords amendment, which would extend the ground to these smaller homes, when the Renters’ Rights Bill returns to the House of Commons on 8th September. 

We believe this is the only way to safeguard the annual letting cycle that underpins the student housing market.  

What’s the background? 

Under the Government’s original proposals, only student landlords letting out houses in multiple occupation (HMOs) would be able to regain their properties to re-let to the next year’s student groups, in line with the academic year. 

One- and two-bed student properties would be excluded, despite these homes accounting for around a third of off-street student accommodation.  

During the Lords debates on the Renters’ Rights Bill, peers passed an amendment removing this restriction, and allowing Ground 4A to be used for all properties solely housing full-time students, regardless of size – despite government opposition. 

The Bill returns to the Commons in September for MPs to approve Lords amendments. It’s expected that the Government would seek to overturn the changes to the student ground and return it to applying to only larger properties – a likely outcome given the size of the Government’s majority in the Commons. 

What’s at stake? 

The potential impact is far reaching. 

Without certainty that they can re-let these homes, landlords are likely to move away from renting to students, reducing supply and limiting choice – as well as undoubtedly pushing up rents. 

Research from Knight Frank shows that almost two-thirds (65%) of first-time applicants say the availability of accommodation influences where they apply to study, with nearly half of students already say that they are concerned about a shortage of suitable housing.  

Many popular university towns and cities are already struggling to house their existing student populations, with a number declaring housing emergencies in recent years, and excluding smaller student homes will only exacerbate the situation. 

This, in turn, will have serious consequences for access to higher education and social mobility.  

Without change, we fear students will be left making major decisions on their futures based on where they can find a home, rather than where they want to study. 

What’s the answer? 

The Government has said it made different rules for one- and two-bedroom student homes to protect part time students and those with children.   

In the letter, which was co-signed by Accommodation for Students and the Young Group amongst others, we propose making small changes, which would allow the Government to continue to protect these specific student demographics, while safeguarding the student housing cycle across the whole market. 

We suggest the Government: 

• Amends Ground 4A to apply to “occupants” rather than “tenants” — ensuring the Ground could not be used where an occupant is a child or dependant 

• Extends Ground 4A to one- and two-bedroom student properties — maintaining the same safeguards as now, since the Ground can only apply where all occupants are full-time students, thereby continuing to meet the ‘student test’.  

Ben Beadle, NRLA chief executive said: “A-level results day should be the start of an exciting new chapter for thousands of young people.  

“But unless MPs act, future students could find their ambitions blocked – not by grades, but by a lack of somewhere to live.  

“Without this change, the Renters’ Rights Bill will make it harder for landlords to offer one- and two-bedroom properties to students. 

“This would break the student housing cycle, restrict choice, and risk undermining social mobility by limiting opportunities for students from all backgrounds. 

“MPs have a final chance in September to protect the homes that make higher education possible – they must take it.” 

More information 

To read the letter in full click here.

For all the latest on the progress of the Renters’ Rights Bill visit our dedicated members hub here.