Michael Gove backtracks on student let reforms

In what appears to be a sudden U-turn, housing secretary Michael Gove is apparently backtracking on his Renters’ Reform Bill, just a week after unveiling it, the Daily Telegraph reports.

It says that the government is now reconsidering whether it should end assured shorthold tenancies for student lets to become periodic tenancies.

The move follows strong criticism from landlords and letting agents.

‘Absolutely essential to avoid decimating the student sector’

On Twitter, the chief executive of the National Residential Landlords’ Association, Ben Beadle, said: “Good. This is absolutely essential to avoid decimating the student sector and is a point we have been campaigning hard for.

“Govt has already exempted PBSA from the new regime and must give parity to PRS student homes.”

Timothy Douglas, the head of policy and campaigns at Propertymark, said: “The UK government must understand the ramifications that changing fixed-term tenancies to periodic will have within the student let market.

“Our member agents continue to express concerns, stating that without the seasonal predictability provided through fixed-term tenancies, the market will be unable to continue to provide a consistent supply of homes at the points of the year where it is needed most and risks reducing housing options for students.”

Periodic tenancies would be introduced across the private rental sector

Under the proposed Renters’ Reform Bill, fixed-term tenancies would be outlawed, and rolling contracts – periodic tenancies – would be introduced across the private rental sector.

But the proposal threatens to disrupt the annual business model of landlords who rent properties to students.

Concerns were raised that the changes could lead to fewer properties being available, leaving many students scrambling for accommodation at the last minute.

The student let sector is already struggling, with shortages in supply and more than two-fifths of universities and colleges experiencing an overall shortage of accommodation at the beginning of the last academic year.

Exemption that will exist for purpose-built student accommodation

Student landlords and agents have been lobbying the Department for Levelling Up, Housing and Communities to offer the same exemption for their sector that will exist for purpose-built student accommodation (PBSA).

Now, the Telegraph says that Mr Gove is considering an amendment to the bill that would allow landlords to stick to their yearly let business model and guarantee vacant possession for the next cohort of students.

This would be added as a specific clause for privately let student property.

A government spokesman said: “The vast majority of students move out at the end of the academic year and will not be impacted by these reforms.

“However, we continue to engage with students and landlords on these measures to ensure they are working for both parties.”

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