Students could it find it harder to find homes to rent with amendments to the Renters Rights Bill potentially creating obstacles for landlords says the NRLA.
The bill was brought to the parliament on Tuesday where it was debated in the commons.
Amendments were made to the bill such as the prevention of the use of possession grounds 4A (where a property must be an HMO and let to full-time students), in instances where a student tenancy was agreed more than six months in advance of the move-in date, though contracts being agreed more than six months in advance will not be outright banned.
The NRLA said that this would benefit neither landlords nor students, saying “students want to secure properties well in advance of the exam period and landlords need certainty on which properties will be available.
“The host of changes proposed is likely to see student landlords and their properties exit the sector and competition rise, with students clamouring to secure properties ever earlier.”
Other changes included the limitation of advanced rents to one month, as well as prohibiting rent payments before a tenancy agreement is signed.
Commenting on this, the NRLA said, “Not only will this limit landlords’ ability to mitigate risks associated with tenants on the financial margins - most students, will struggle to demonstrate a good credit history, and certainly international ones - it will also prevent them paying rent term-by-term.”
The group argued that this is a fairly standard practice which makes easier for students to manage finances.
“Once it is banned landlords will invariably tighten affordability checks and call for guarantors or rent guarantee insurance to protect themselves, again a barrier for those students who have no-one to act as a guarantor, and another hoop to jump through.”
