03 Nov Renters (Reform) Bill second reading reveals extent of student accommodation woes
The second reading of the Renters (Reform) Bill in Parliament on 23rd October highlighted the woes that the UK’s renters are facing, including students in the private rented sector. While further discussion around fixed term versus rolling lets for students was clearly needed, MPs’ comments showcased the breadth of the problems that student renters face.
Paul Blomfield, Sheffield Central MP, observed that around 45% of students live in the private rented sector, accounting for some 600,000 young people across England and Wales. Yet the UK’s rental crisis means that suitable accommodation is often not available. According to Sheffield South East MP Mr Clive Betts:
“Last year, Manchester students were actually being encouraged to live in Liverpool, because there was not enough housing in Manchester for them.”
It’s an issue that UK rental guarantor service Housing Hand has seen getting worse over the past few years. As Chief Operating Officer Graham Hayward points out, students – who are the paying client to all concerned – simply want a good standard of accommodation close to their place of study and at a reasonable market rate. Universities, meanwhile, need to be highly populated to make it economically viable to continue to deliver a consistently high-quality education. This is particularly relevant given the variable attendance levels and shifting domestic and international student numbers due to Brexit and Covid.
Accommodation providers felt the impact of those events as well, with many dealing with low occupancy levels while also riding the rollercoaster or regulatory and legal changes. Now they face further regulatory challenges coming as a result of the Renters (Reform) Bill, though the Bill as currently debated doesn’t provide a level playing field, given its different treatment of purpose-built student accommodation and houses in multiple occupation (HMOs).
All of this creates a critical need for more joined up thinking, as Housing Hand’s Graham Hayward explains:
“Universities need strong attendance, so they also need to coordinate with the various stakeholders in the accommodation supply chain, to ensure that planned student numbers can be housed appropriately. This is a market, after all, so if supply doesn’t meet demand then demand may weaken – though it will certainly increase in price until it is rebalanced.”
