Plans to abolish fixed-term tenancies in England, which were announced last week, could ‘decimate’ the student housing market, landlords have warned.
The Renters Reform Bill is set to abolish fixed-term tenancies and replace them with rolling ones, meaning tenants pay rent weekly or monthly with no end fixed date. The changes also mean tenants will only need to provide two months’ notice to leave a property.
However, despite providing people with a way out of rented homes quickly, the National Residential Landlords Association (NRLA) said a lack of certainty properties would be available at the start of the academic year which will inevitably cause ‘chaos’. Landlords renting to students typically offer a 12-month fixed-term contract to match the academic year and ensure properties are not left empty outside of term time.
But, the National Union of Students said if students were exempt from reforms they would become an ‘underclass’. The government have since noted they are engaging with students and landlords on the matter.
Purpose-built student accommodation will be exempt from these measures, but other student housing available in towns and cities will not.
The NRLA said under current proposals, landlords would be reliant on sitting tenants giving notice to leave a property in good time to enable new students to move in.
Alongside axing fixed-term contracts, the bill has also scrapped ‘no-fault evictions’, with landlords only able to evict tenants in certain circumstances, including when they wish to sell the property or when they or a close family member want to move in.
The bill is yet to be debated by MPs and peers, and changes could be introduced before it becomes law.
Dan Wilson, Acting Director of the campaign group Generation Rent, said: ‘Part of the reason the government is scrapping fixed terms for the private sector is to give tenants a little bit more flexibility if the home that they move into turns out not to be suitable.
‘So if you’re signed into a tenancy for a property that’s falling apart, if you’re unable to get your landlord to make the repairs that are needed, then in a lot of cases moving out would be an option.’
Image: Tim Gouw