Government plans to restrict a key student housing exemption to larger Houses of Multiple Occupation (HMOs) risks undermining supply and disrupting the annual student rental cycle, warns Ben Beadle, Chief Executive of the National Residential Landlord Association (NRLA).

His warning follows comments made by the House of Lords Housing Minister, Baroness Taylor of Stevenage (main picture), during Committee Stage of the RRB on Tuesday. She argued that limiting the exemption under Ground 4A to HMOs with three or more bedrooms “captures the bulk of typical students”.

However, data from the accommodation search engine accommodationforstudents.com suggests that one and two-bedroom properties account for around one-third (32%) of all ‘off-street’ student housing.

Ground 4A, as currently drafted, allows landlords to regain possession of properties let to students in line with the academic calendar – but only where the property is an HMO with three or more bedrooms.

Amendment

An amendment proposed by Lord Willetts, President of the Resolution Foundation, that was backed by a cross-party group of Peers, sought to extend this ground to include one and two-bedroom student properties.

The NRLA says that, with the Renters’ Rights Bill abolishing fixed-term tenancies, Ground 4A is crucial to providing landlords with the certainty that they will be able to regain possession of their property at the end of the academic year so they can let to new students.

Without extending this to one or two-bedroom properties, it could prove unviable for many landlords to stay in the student housing market.

Beadle says: “We welcome the Government’s recognition that supporting the student rental cycle is important, and we agree with the Minister’s comment that increasing supply is essential to stabilising rents. However, the decision to exclude one and two-bedroom student homes from Ground 4A will do the exact opposite.

“These properties make up a significant part of the student housing market and are often preferred by final-year and postgraduate students looking for quieter places to live and study.

If landlords are not confident they can regain possession in time for the next academic year, many will stop letting to students altogether.”

“The Government’s justification for excluding these homes is misplaced. We recognise the need to ensure security for part-time students, student parents and other vulnerable tenants, but excluding smaller student homes from Ground 4A does nothing to support them.

“If landlords are not confident they can regain possession in time for the next academic year, many will stop letting to students altogether. The result will be fewer homes, higher competition, increased rents, and less choice for students.

“We urge the Government to reconsider this at Report Stage and ensure all student homes – not just larger HMOs – are covered by Ground 4A.”