One of the UK’s leading student lettings agencies has pointed out a huge ‘crunch point’ for HMO landlords when the Renters’ Rights Bill goes live later this year.
Richard Ward (main image), Head of Research at StuRents, says nearly 70% of student HMO tenants look to secure their tenancies at least six months in advance, something that the Bill seeks to outlaw.
“So we will soon face an interesting situation, possibly this year depending on when the Bill goes live, where domestic students will be looking in November and December to sign contracts for an HMO but won’t be able to,” says Ward.
He says one option is that landlords bring forward their start dates for tenancies, but that’s unlikely to be attractive for either them or tenants as start dates therefore won’t align with term dates.
“Although it’s not confirmed yet, it is understood that purpose-built student accommodation will be exempt from this ‘forward rent’ rule and therefore be in a position to pick up this early demand,” he adds. “Let’s see how that plays out.”
Student landlords are hoping, however, that the Government is listening on this point and will grant student HMOs an exemption – something it has already done when it comes to evictions. Ground 4a for eviction within the Bill allows student landlords to evict tenants with four months’ notice so that properties can be repossessed vacant prior to the next academic year starting.
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