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Student rents could surge due to Renters’ Rights Bill, landlords warn

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Student rents could surge following the introduction of the Renters’ Rights Bill, say landlords, who have warned that it also discriminates against foreign students.

Propertymark reports that many landlords want fixed-term tenancies to be retained to maintain stability.  

One landlord old Propertymark: “There must be a 12-month fixed-term because as a landlord, if I let to a student in December and they leave in May and June and then there is a four-month void, I will not then let to another student. Rents will have to go up.”

Another explains that many students pay on a term-by-term basis.

“If they pay periodically, they may frequently default, or forget to pay, which can result in penalties,” he said.

“Many landlords may be put off by the increased risks and may stop using a flat to rent to students. This may increase costs to students in the end because of reduced supply.”  

International students

Sophie Lang, ARLA Propertymark executive for Cornwall, who specialises in student lettings explains that international students often rely on grants or scholarships from their home countries to pay rent upfront - a practice that may no longer be permissible under the new framework.

“This restriction could funnel international students toward more expensive purpose-built student accommodation, significantly increasing their cost of living,” she saod.

“The risk is clear: reduced access to affordable accommodation could hinder some young people’s ability to attend university at all.”

Propertymark has also warned that capping advance payments at one month’s rent, and not allowing rent in advance to be taken before signing a tenancy, will slash choice.

The National Residential Landlords Association agrees that for certain tenant groups including international students, upfront rent payments serve as an enabler of access rather than a barrier.

Its recent data reveals that 91% of landlords take either no advance payment at all or just one month’s rent in advance and that when larger advance payments are made, it is often at the tenant’s request or a result of specific circumstances.

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landlords
Student landlords
Propertymark

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