Student landlord fears over periodic tenancies dismissed

It looks like student landlords will have to move to periodic tenancies for their rental properties – according to the Department for Levelling Up, Housing & Communities (DLUHC).

While the Renters Reform Bill has still to make its way through Parliament, the DLUHC is responding to landlord fears with a letter that states:

‘While we expect most students will continue to move in line with the academic year, they may equally face circumstances beyond their control and need to vacate a property early, or be locked into contracts for poor quality housing. Responses to our consultation also showed that the student population is diverse – some students have families, local roots, live with non-students, or have other reasons why they may wish to remain in the property.’

Would not be fair to apply different rules to students

It goes on: ‘We do not think it would be fair to apply different rules to students who often require the same level of security as other tenants, or face poor standards within the private rented sector. Therefore, all students who are renting a private home will have periodic tenancies, providing the same certainty as all other tenants will enjoy.’

The letter being sent out by DLUHC is published below.

It was sent to a landlords’ association and the worry for student landlords is that students can give just two months’ notice to leave their property – leaving them with a struggle to find a replacement tenant.

‘Lack of government support for student landlords’

Chris Norris, the director of policy at the National Residential Landlords Association (NRLA), said: “The lack of government support for student landlords is extremely worrying.

“Making student tenancies periodic will only cause problems for all parties involved, and ultimately may result in landlords leaving the sector.

“In the experience of many, one year tenancy agreements are perfect for students as their living situations tend to change year on year.”

‘Create a sense of uncertainty for student tenants’

He added: “By making these periodic, the government will only create a sense of uncertainty for student tenants.

“The government’s proposed changes in this area do nothing to address the major problem affecting the private rented sector: the supply and demand crisis.

“Without pro-growth policies designed to increase the availability of privately rented homes, the shortage of decent accommodation for all tenants – student and non-student alike – will worsen.”

The DLUHC letter that is being sent out:

The Renters Reform Bill will fulfil our manifesto commitment to deliver a better deal for renters by abolishing Section 21 ‘no fault’ evictions. We will move to a single system of periodic tenancies in future, allowing renters to end the tenancy when necessary, and landlords to regain possession in reasonable circumstances defined in law. Our reforms will mean tenants enjoy greater security and feel empowered to challenge poor practice and unreasonable rent rises. 

We recognise that landlords need confidence that they can regain possession of their properties when necessary. We will reform the possession grounds for landlords, introducing new and stronger grounds for repeated incidences of rent arrears, and allowing landlords to end tenancies to sell or move into their properties. We will reduce the notice periods for anti-social behaviour, and explore prioritisation in the courts with the Judiciary, ensuring landlords can take swift action when needed.

While we expect most students will continue to move in line with the academic year, they may equally face circumstances beyond their control and need to vacate a property early, or be locked into contracts for poor quality housing. Responses to our consultation also showed that the student population is diverse – some students have families, local roots, live with non-students, or have other reasons why they may wish to remain in the property. 

We do not think it would be fair to apply different rules to students who often require the same level of security as other tenants, or face poor standards within the private rented sector. Therefore, all students who are renting a private home will have periodic tenancies, providing the same certainty as all other tenants will enjoy. 

We will allow time for a smooth transition to the new system, providing time for the market to adjust, while making sure that tenants can benefit from the new system as soon as possible. We will implement the new system in two stages, providing at least six months’ notice of our first implementation date, after which all new tenancies will be periodic and governed by the new rules. All existing tenancies will transition to the new system on a second implementation date and we will allow at least twelve months between the first and second dates.

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