Challenges for Student Housing Due to Renters Reform Bill

The Second Reading of the Renters Reform Bill has raised tension among the student lettings and student renters. The Renters Reform Bill has accentuated the problems faced by student renters in the UK. 

The changes in the Renters Reform Bill have intensified the complexities in student housing operations, especially the regulation and treatment of Purpose Built Student Accommodation (PBSAs) and Houses in Multiple Occupations (HMOs), which are prevalent in the student housing sector. This change, along with the already existing impacts of Brexit & COVID-19 on the shift in student preferences, can influence the position of the United Kingdom in the global higher education market. “Known for being the global leader when it comes to education, the UK should consider making decisions where all parties are involved. This includes educational institutes, such as the universities and student housing stakeholders. They should work together towards establishing a common ground,” said Hayward.

Quoting Graham Hayward, Housing Hand’s Chief Operating Officer, “As universities are emphasising a stronger attendance and expecting the students to attend classes offline, they need to coordinate with the various student housing stakeholders within the student accommodation industry. This will help in planning the number of student housing in a proper manner. Considering that the student accommodation industry is also a thriving market, it is important to balance supply and demand. If the supply doesn’t meet the demand, then the demand may weaken, and a rise in the prices until a balance is established can be expected.”

One of the major changes made in the Renters Reform Bill 2023 is the clause for open-ended tenancies, which brings a lot of uncertainty to the student lettings ends. This would become extremely debatable as both the students and tenants expect to choose the start and end dates for the tenancies.

The demand and supply for student housing in the UK vary heavily on a regional basis. In cities like Manchester, London, and Bristol, three of the major student hubs, students have to live far from their universities. Students who have opted for the autumn intake are facing unusual challenges in securing suitable housing in the vicinity of their chosen university. Without a substantial solution for the landlords, the situation will only deteriorate further.

There is a huge student population that relies on the private student-letting sector. This data from the Cushman & Wakefield UK Student Accommodation Report 2023 denotes that a surge in the number of international students moving to London has increased by 27,495 in the past two years. According to the Higher Education Statistics Agency, the full-time student population hiked to 2.2 million in the year 2021-22. The number of international students studying in the UK stands at 559,825, which represents a hike of 23.7% when compared to the previous year's statistics. 

In a recent debate concerning the changes in the Renters Reform Bill 2023, MP Paul Blomfield from Sheffield Central pointed out that around 45% of the total population of 6,00,000 students/ youngsters in England rely on rented accommodation. All in all, the Renters Reform Bill brings a lot of uncertainty to the table for both the university students and the student accommodation owner.