Students Welcome Tenancy Freedom as Landlords Warn of Rent Rises

Students renting from private landlords in England can now leave a tenancy instead of being tied in for the full academic year. Landlords say the change brings risks that could push rents up.

The Renters' Rights Act, which came into force in May, ended fixed-term tenancies. Properties are now let on a rolling basis, with rent paid weekly or monthly and no fixed end date. Student contracts used to run for the full academic year. University-owned halls of residence and purpose-built student accommodation are exempt and can still offer fixed terms, so the change mainly affects students in private lets.

Eddie Lever, 20, had finished his first year at the University of Exeter when he decided the course was not for him. He wanted to switch to international relations at the University of York, but had already organised his house for the next year. Under the new rules he had to give only two months' notice.

"If the Renters' Rights Act wasn't a thing, I don't think I would have been able to move universities because I would have been locked into the full [year] contract," he said. He was on a joint tenancy, so his departure ended the tenancy for the whole house. A friend who needed a room took his place, and his housemates could sign a new agreement.

The student view

Lewis Wilson, vice president for higher education at the National Union of Students, said the flexibility lets students save on rent by moving home for the summer. Many contracts used to run into the summer after courses had finished.

The act also bans landlords in England from evicting tenants without a reason. Campaigners argue this gives renters the confidence to ask for repairs without fearing eviction.

Landlords' concerns

Chris Norris, chief policy officer at the National Residential Landlords Association, said the bigger problem for student landlords is tenants choosing to leave early. Students may fall out with housemates or drop out of university, and houses could stand empty over the summer or even sooner. It is also harder to let a house for just a few months, he said.

The act did add a specific ground for landlords to evict a group of students at the end of the academic year if they intend to re-let the property to students.

Norris said it is early days and many landlords are treating this year as a test. He warned that some may raise monthly rents to cover the risk of empty properties, and others may sell up or stop renting to students, cutting supply and pushing up prices.

Sue Lawes rents three shared houses to students in Norwich. She does not want to raise prices, but may have to if her houses sit empty after final exams. She has already moved the start of her tenancy agreements from September to August. She supports the aim of the law, but wants landlords to be allowed to offer fixed-term contracts that match the academic year.

"Landlords are going to find it very, very hard to absorb those void periods," she said. "Landlords will put prices up and students are going to pay."

Source: BBC News