Landlords say plans for open-ended student tenancies must be scrapped
The National Residential Landlords Association has called for all student accommodation to be exempt from periodic tenancy plans.
The National Residential Landlords Association (NRLA) has called for all student accommodation to be exempt from plans to make every tenancy open ended.
Under current Government rent reform plans all student housing, with the exception of purpose-built blocks, will be subject to open-ended tenancies.
CHAOS
But that could risk chaos with students unable to find out whether housing will be available at the start of each academic year.
Unless sitting tenants have handed in their notice to leave then landlords will be unable to guarantee that accommodation will be available for the start of each academic year.
Under the NRLA’s proposals student landlords would be able to repossess a property with two months’ notice where it is required for new students each year.
To provide protections, the earliest such notice could be served to sitting tenants would be in the last two months of a tenancy agreement, or at the 10th month of a 12-month fixed term.
COMMON SENSE
Ben Beadle (main picture), Chief Executive of the NRLA, says: “The student housing market works unlike any other, operating from one academic year to the next.
“It is common sense that landlords should have certainty that accommodation can be made available for new students each year, as has already been reflected for the purpose-built student accommodation sector
“Without changes the Government risk causing chaos, confusion and anxiety for students unable to plan where they live for the start of each academic year.”
Data from NRLA reveals that almost nine out of 10 (84%) landlords renting to students are concerned about the Government’s plans.
The end of fixed term Assured Shorthold Tenancies will bring chaos.”
One landlord told the NRLA: “I let solely to students. The end of fixed term Assured Shorthold Tenancies will bring chaos. We will have no guarantee that existing tenants will leave and therefore won’t be able to let properties in advance.”
Added to that – we regularly have tenants on work/study placements seeking accommodation for 6 months only and have to turn down because our student properties let on a 12 month churn. It’s fairly obvious that moving to a periodic system will encourage any renter looking for a home for 6 months only, to claim there intentions are to stay for 12 to secure the accommodation. This will happen across the board not just student accommodation. While a non-student property stands a decent chance of re-letting throughout the year losing rent an dincurring re-letting fees for the landlord a student property could end up empty for the remainimng 6 months of the academic year with no rent comming in as the window to re-let closes in.