Why Section 21 could have a dire effect on student lets in Yorkshire

The headliner is the end of fixed term tenancies and abolition of “no fault” Section 21 evictions. Under the proposals, any tenant will be able to give a month’s notice to end their tenancy.

This will give more security to tenants but will make it more difficult for landlords to reclaim their properties.

This will be a seismic change to the rental market and the biggest impact is on the student sector.

The looming Renters Reform Bill, which is currently being kicked around Parliament after years of procrastination, is likely to have the single most significant impact on the rental market in decades.

There are several elements contained within it, most of which seem pretty reasonable, and a number of which are already in place under different guises.

The headliner is the end of fixed term tenancies and abolition of “no fault” Section 21 evictions. Under the proposals, any tenant will be able to give a month’s notice to end their tenancy.

This will give more security to tenants but will make it more difficult for landlords to reclaim their properties.

This will be a seismic change to the rental market and the biggest impact is on the student sector.

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Currently, most students sign a fixed 12-month contract for a full academic year and move in over the summer. Students like the security of this agreement as do landlords as it’s hard to re-fill a large student house half-way through the year with professionals or families.

In addition, Article 4 planning restrictions in many cities, including Leeds, could prevent a landlord re-letting to students in the future if voids are back-filled with families or couples, as this could be seen as a change of use class.

Students secure accommodation well in advance of the next academic year as both tenants and landlords have a pre-determined end date when properties will become available again.

By prohibiting fixed tenancies, student tenants would only need to give a month’s notice and could vacate at any point during the year. This indefinite leave to remain means there is no guarantee that the property will become vacant for the following year, making it impossible for landlords and prospective new tenants to enter into a new tenancy agreement for the next academic year.

Last summer saw worrying housing shortages in a number of university cities in the UK. Durham had students in sleeping bags camping out the day before housing lists were released, the University of Manchester housed students in Huddersfield and students from York were being relocated to Hull.

Leeds is quite finely balanced; the supply and demand is about right, but last year we were turning away larger than usual numbers of students at the end of the summer as there were no rooms still available.

Taking away the security of fixed student tenancies,for both landlords and tenants, is likely to lead to further reductions in student housing stock as landlords exit this market.

Even before the proposed changes, accommodation portal StuRents predicted a shortfall of 450,000 student bedspaces by 2025.

In Scotland, Section 21 has already been scrapped and large numbers of landlords have left the student market. In cities like Edinburgh students are couch-surfing, commuting from other cities, or simply cancelling courses.

The current drafting of the bill gives an exemption for Purpose Built Accommodation but not for the typical student house-shares. There is nothing wrong with PBSA but it is expensive and dilutes the experience of proper communal living.

Alongside landlord and university groups we have been lobbying for all student tenancies to be exempt, not just PBSA. It’s not too late to avert a crisis, and there are noises coming out of Westminster that this is at least being considered. Fingers crossed that common sense prevails.