The key facts
- The Renters' Rights Act, in force since May, abolished fixed-term tenancy agreements — students can move out with two months' notice
- Students call this a flexibility that allows them to change university or move home for the summer
- Students say this gives them the flexibility to change university or move home for the summer
- Landlords warn of empty homes in summer and possible rate increases or exiting the market
- Landlords warn of empty houses over the summer and possible rent rises or exit from the market
New law gives students the freedom to move out
The Renters' Rights Act, which came into force in May, is being called the biggest change for tenants in England in a generation. It abolished fixed-term tenancy agreements, to which students were previously also tied: housing is now let on a rolling basis, with no fixed end date, and tenants can move out by giving two months' notice. The changes primarily affect those renting from private landlords: university halls of residence and purpose-built student accommodation (PBSA) are exempt from this rule and may continue to offer fixed-term contracts, BBC News reports.
A student's experience in Exeter
20-year-old Eddie Lever decided to transfer to international relations at the University of York after his first year at the University of Exeter, even though he had already signed a tenancy agreement for the following year. Thanks to the new law, two months' notice was enough for him to exit the contract and stop paying rent. 'If it weren't for the Renters' Rights Act, I probably wouldn't have been able to change universities — I would have been tied to the contract for the whole year. That would have made the move unaffordable,' he told the BBC. Because he was in a joint tenancy, his departure ended the contract for the whole house; a friend helped out by taking over his room. Eddie himself admits that without a 'replacement' it would have been harder on his housemates, but he believes the flexibility is worth that risk.
What the students' union and landlords say
Lewis Wilson, vice-president for higher education at the National Union of Students (NUS), notes that the flexibility allows students to save on rent by moving home for the summer — previously, contracts often continued after classes ended. He adds that students also benefit from other provisions of the law, which bans no-fault evictions in England: in the view of campaigners, this gives tenants the confidence to demand repairs without fear of eviction. On the other hand, uncertainty has increased for landlords. Chris Norris, chief policy officer at the National Residential Landlords Association (NRLA), points out that the law introduced a separate ground for evicting a group of students at the end of the academic year, if the owner plans to let the property to new students, but the main problem is tenants leaving early: students are more likely than families to move out because of conflicts with housemates or being expelled from their course. According to him, houses may sit empty over the summer, and letting a property for just a few months has become harder, since there is no guarantee it will be available by autumn.
Warning of rising rates
Norris says the law has only recently taken effect and many landlords are treating this year as a test, but he warns that some may raise the monthly rate to compensate for the risk of vacancies, and in some cases sell the property or stop letting to students, which would reduce supply and push up prices. Sue Low, who lets three shared houses to students in Norwich, fears the same: if the houses sit empty over the summer after exams, she may have to raise prices, although she does not want to. She has already moved the start of contracts from September to August to reduce the risks, and notes that if tenants leave early, she will find it difficult to cover the mortgage, council tax and fixed utility bills on an empty property. Low stresses that she supports the law's aim — to give tenants protection — but asks that landlords be allowed to offer students fixed-term contracts tied to the academic year. 'Landlords will find it very, very difficult to absorb periods of vacancy. Landlords will raise prices, and it will be students who pay,' she told the BBC.
Why this matters
The changes affect millions of renters in England and directly affect the student private rental market. For students, the practical consequence is the ability to move out with two months' notice and not pay for the summer after finishing their studies; for landlords, it is the risk of vacancy which, they say, could lead to higher rents or a reduced supply. It remains unclear how the risk will play out in practice: market participants themselves call the current year a 'test', and no data on the real impact on prices and supply levels have yet been published.
Image source, Eddie Lever Eddie Lever was able to leave his tenancy more easily because of the Renters' Rights Act
Image source, NUS Lewis Wilson from the NUS says the legislation has given students more freedom to move out when they want
Image source, Sue Lawes Sue Lawes thinks the changes mean many student landlords will put up their rent
