Renters' Rights Bill

Written evidence submitted by Sue and Richard Lawes (RRB55)

Executive summary

· We are student landlords and support the general aims of the Bill

· We have, however, concerns about the impact of the abolition of fixed-term tenancies on ‘ O ff- S treet’ S tudent A ccommodation:

o Increased costs for students

o Less supply of accommodation as landlords exit the sector

· T he provision for 2 months’ notice will create uncertainty for students and landlords , making joint tenancies – where a group of student friends wish to rent a house together – very difficult to manage

· There will be negative environmental impacts (and increased costs for students) as landlords and students are forced down the ‘bills-inclusive’ route

· There appears to be no reason, consistent with the aims of the Bill, why Off-Street accommodation should be treated differently from Purpose Built Student Accommodation

Evidence

Our background  

 

1. We are student landlords in Norwich , provide high-quality accommodation at a reasonable price, with a fast, reliable and personal service.  

 

The general aims of the Bill   

 

2. We fully support the aims of the Bill, giving more security to tenants, and making the relationship between tenants and landlords fairer .   

 

3. Students should not have to put up with sub-standard accommodation, unresponsive landlords - and overpriced rents. There are however other ways of dealing with that (such as independent inspections of properties, sector-specific grounds for notices to quit etc.).  

 

Our concerns

4. We have concerns about the negative impacts on the ' O ff- S treet' S tudent Accommodation sector in particular and on the students themselves.  

5. Our main concern is the abolition of fixed-term tenancies – this does not fit well with the yearly academic cycle. It seems inconsistent to treat P urpose - B uilt Student Accommodation (PBSA) differently, which ha s been exempted from this aspect of the bill .  

 

Impact on students  

 

6. Increased costs to students - rents will increase.   

As students will be able to give notice to leave the accommodation in June (when most courses finish), there is likely to be a void period from then until the start of the new academic year. Landlords will seek to recover the loss of income by increasing the monthly rent i.e. compressing 12 month’s rent into 10 or 9 months. This will make the overall rent paid even greater for students who wish to stay on over the Summer months.  

 

7. Reduction of supply of private student accommodation - a loss of supply will also lead to upward pressure on rents.  

G iven the uncertainty over their rental income, landlords may decide it’s not worth it or too complicated to remain in the sector.   

8. Loss of security for housemates   – joint tenancies may become difficult to manage.

Students typically rent accommodation as a group of friends, and enter into joint tenancies. If one of them gives notice early (i.e. to leave before the end of the academic year), the joint tenancy comes to an end, and a new tenancy has to be created, either with a replacement tenant or with the remaining tenants covering the total rent between them. These situations can occur at present, but the proposed right to give 2 months’ notice at any time makes them far more likely , creating uncertainty .  

9. Environmental impact – ‘bills inclusive’ tenancies will lead to greater consumption of water and energy, with increased costs to students.

Th e uncertainty over tenancies will make it difficult for landlords to offer accommodation where the students pay their own bills. (As a fixed-term tenancy cannot be agreed, landlords will have to have utilities accounts in their own names.) The alternative ‘bills inclusive’ option will mean:  

9.1 Increased costs for students, as landlords set the bills element of rent high enough to cover potential excess usage by the tenants, or go through an equally expensive 3 rd party ;

9.2 Typically, our students pay around £50 per person pcm for bills, c ompared to around £110pcm under a bills-inclusive option;

9.3 Negative environmental impacts, as tenants will have no incentive to be careful with gas, electricity and water .  

10. Unfair advantage to the PBSA sector – this again will increase costs for students and adversely affect the student experience

The PBSA exemption from the provision concerning fixed-term tenancies, increased rents i n the ‘off-street’ sector and decrease in supply , will also drive more students into PBSA, which is already substantially more expensive per month than the off-street sector.  

10.1 Typical PBSA costs in Norwich are from £168 to £205 per week ( en -suite room), whereas we charge an average £103pw (including our estimate for bills) in a 5- bed room house with 3 bathrooms/WC. Our properties are high-spec and well-maintained.

10.2 The PBSA sector also doesn't offer students the experience of independent living in a group of friends that many students seek.   

 

Views of other organisations  

 

11. Unipol ( https://www.unipol.org.uk/news/the-renters-rights-bill/ ) ran a webinar on 27 th September 2024, when concerns were expressed by all speakers - including a student representative - about rent increases, and/or a decrease in supply as landlords leave the sector.  

 

12. The College and University Business Officers (CUBO) submitted written evidence on the previous Renters (Reform) Bill in November 2023 in which they  asked the then Government "to   treat students as a distinct tenant class and extend the exemption granted to Purpose Built Student Accommodation (PBSA) to include all PRS [Private Rented Sector] student housing."  

 

CUBO is the membership body for professionals responsible for higher education commercial and campus services, which includes both university-owned and managed and private PBSA. On the face of it, CUBO would have a commercial interest in  not  extending the exemption beyond PBSA; however, they actually recommend extending the exemption, it seems for similar reasons to those set out above.  

 

 

27 October 2024