Renters' Rights Bill

Written evidence submitted by Anonymous to The Renters’ Rights Public Bill Committee (RRB56).

1.1 For the past 50 years, my family has been a dedicated provider of student accommodation in Sheffield, working with both The University of Sheffield and Sheffield Hallam University.

1.2 We offer a range of private student accommodation, from studios and one-bedroom apartments to seven-bedroom houses, situated in residential areas close to the universities.

1.3 The quality of student accommodation has improved significantly over the years, largely due to healthy competition in the market.

1.4 Over the last two decades, the sector has adapted to numerous new regulations, some of which have been beneficial, while others have posed challenges.

1.5 Based on my experience, the majority of student accommodation providers are committed to high standards of quality and service, often exceeding the expectations of our student tenants.

2. Proposed Legislative Concerns and Recommendations

2.1 Inclusion of Studio and Small Apartments (1-2 Bedrooms)

The proposed legislation currently addresses Houses in Multiple Occupation (HMOs) of three bedrooms or more. We recommend expanding this to include studios and one- to two-bedroom properties, ensuring all students have access to a broad range of housing options that suit their individual needs.

2.2 Mixed Groups of Students and Non-Students

It is common for groups of students to live together for multiple years. For instance, a group of five students may want to continue living together in their final year, even though two members will have graduated. Under the proposed regulations, we understand that it would no longer be possible to regain possession of the property with four months’ notice if some tenants are no longer students.

Could an exemption be made in such cases, allowing non-students who choose to remain in a student house to waive specific renters’ rights? This flexibility would benefit both landlords and student tenants, preserving the existing group dynamic without unnecessary disruption. This is already impacting our business model, and, as we are letting properties for the next academic year (starting July 1, 2025), we have encountered significant concerns from students about these potential limitations.

2.3 Impact on the Student Housing Market

Many committee members may remember the formative experience of sharing a home with fellow students-a memorable, life-changing experience never to be forgotten. Unfortunately, we are seeing a shift, as many providers, myself included, are reconsidering our place in this sector. Ten years ago, investor demand for student properties was robust, but this interest has sharply declined. For example, at a recent Edwards property auction, three student houses  in Sheffield failed to sell due to lack of investor interest.

Several factors have contributed to the challenges in this sector, including:

•.      Uncertainty stress and anxiety with the proposed new legislation

• A significant rise in HMO license fees, which have recently increased from £400 to £1200

• The removal of the 10% furniture allowance

• Mortgage interest deductions that are no longer allowed

• A substantial increase in administrative requirements, such as right-to-rent checks, gas and electric safety certifications, and more

If this trend continues, it could result in a shortage of available student accommodation as providers exit the market, potentially creating serious housing challenges for future students.

2.4 Student Loan Payment Structure and Rent Collection

Currently, student rent payments align with the academic year’s loan disbursement schedule, which allows students to manage their finances more effectively. Under the new legislation, landlords would only be permitted to collect one month’s rent upfront. While I understand the reasoning behind this, it would increase administrative workload and costs, potentially leading to higher rents. Additionally, many students prefer the existing structure. Would it be possible to offer students the choice to pay in installments aligned with their loan schedule

2.5 Requirement for Full-Time Student Letting Between June and September

The proposed regulations mandate that student providers rent properties to full-time students between June and September. If, for example, one student in a five-person group serves two months’ notice in September, it becomes challenging to fill that vacancy in November, which falls outside the designated timeframe. Clarification on how to manage such cases would be invaluable.

2.6 Impact on Mortgage Agreements

Has the committee considered the potential impact of these regulations on mortgage arrangements? If landlords are unable to guarantee year-long income due to the possibility of students serving two months’ notice at any time, mortgage lenders may reassess their terms for student property loans. For instance, a vacancy starting in January could result in prolonged periods without rental income, making it financially unfeasible for landlords and potentially affecting lending criteria. A student housing provider wouldn’t be able to let short  to another type of tenant as they wouldn’t be able to regain the property back.

October 2024