Lawyers have been left scratching their heads over guidance about whether Purpose-Built Student Accommodation (PBSA) will be exempt from changes in the Renters’ Rights Bill.

The Bill will abolish Section 21 notices and scrap assured shorthold tenancies, but the government’s explanatory notes say: “Purpose-Built Student Accommodation will be exempt from these changes as long as the provider is registered for government-approved codes, since these tenancies are not assured. Lettings by PBSA landlords will be governed by the Protection from Eviction Act 1977.”

Robin Stewart, joint manager of private sector residential landlord and tenant at Anthony Gold, (pictured above) explains that tenancies granted by PBSA providers who subscribe to government-approved codes (a set of accreditation schemes run by Unipol that aim to provide redress) can currently grant assured tenancies and ASTs.

Special treatment

“Contrary to what the explanatory notes seems to suggest, nothing in the Bill creates an exemption for PBSA tenancies,” says Stewart. “There is some special treatment for the student accommodation in the amendments to the ‘grounds for possession’, but nothing which would bring PBSA tenancies outside the scope of the Bill’s reforms generally.”

He believes it might simply be a mistake but says if the government really wants to exempt some PBSA providers from granting assured tenancies, amendments to the ‘Lettings to Students’ regulations would achieve this. “The government could either identify certain providers within the existing list or create a new category of landlords who can qualify for the exemption.”

Long-awaited

While Stewart believes this apparent anomaly might be addressed during the Bill’s passage through Parliament, he advises all landlords to think about how to prepare for these long-awaited changes.

It comes as Knight Frank’s annual Student Accommodation Survey estimates that by the end of the decade, PBSA will accommodate 69% of second and third-year students who increasingly want more amenities in their digs.

As the PBSA sector grows, there are calls for the government to give all students the same tenancies and rights, regardless of whether they’re in halls or private houses, or risk creating a dual market in the sector.

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