Landlord organisation warns of risks to student housing market from periodic tenancies

A landlord organisation is urging the government to introduce a student shorthold tenancy (SST) to protect the student rental market.

iHowz warns the student rental sector is unique and any changes will cause uncertainty for landlords and students.

Under the Renters’ Rights Bill, fixed-term tenancies will be scrapped and replaced with periodic tenancies.

Uncertainty for tenants and landlords

iHowz warns a change to periodic tenancies will lead to huge uncertainty for students who may not know whether they have secured accommodation for the academic year.

The organisation says: “We are concerned that under the twin proposals of periodic tenancies only, the ability for tenants to give two months’ notice at any time, will cause considerable dislocation to this model, leading to uncertainty for tenants and landlords alike.

“If we continue to give joint and several tenancies, and one (or more) of the tenants gives notice, it will end the tenancy agreement for all the tenants.  This will then give uncertainty to the remaining tenants not knowing if they will be able to continue in that accommodation.

“Currently, all the tenants are bound to a fixed term, and if one wishes to leave the landlord and tenants work together to ensure any replacement is mutually to all parties. If we change to granting individual room agreements, the tenants will lose control of their fellow occupants.”

Landlords would struggle with tenants handing back properties early

iHowz says their student shorthold tenancy (SST) will help meet the unique needs of student renters.

The organisation explains that the STT would include “a clear commencement date and completion date, ensuring students have guaranteed accommodation for the academic year or term.

iHowz adds, under the STT: “Students won’t have to commit to their tenancy agreement until early in the year they plan to move in, giving them more flexibility and reducing uncertainty compared to signing at the end of the previous year.”

iHowz says many landlords would struggle with tenants handing back properties early.

The organisation said: “It is unrealistic to suggest that landlords could simply replace tenants who wish to hand back a property early, as many of these properties are subject to Article 4 and other planning restrictions in addition to licensing, and lack of a fixed term would remove certainty for the next academic let.

Safe living environment for students

The organisation says only landlords who are part of an accreditation scheme that sets standards for student accommodation would be eligible to issue an STT.

iHowz says if a landlord does not meet these accreditation standards, they would only be able to offer a standard assured tenancy, as outlined in the Renters’ Rights Bill.

Other recommendations ihowz suggests for the student rental market include the termination of a tenancy agreement for health and safety violations.

iHowz says: “If a tenant reports a problem to the local authority and a Section 11 Improvement Notice is served, and not complied with in the stated period, the tenant would be able to terminate the tenancy.  This ensures that landlords maintain a safe and habitable living environment for students.”

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