As the academic year approaches, industry experts are warning that the Renters' Rights Act has disrupted the student rental market. Lettings experts speaking to the Financial Times (FT) indicate that the ban on rent in advance has created barriers for international students.
Under the Act, landlords and agents can no longer accept large amounts of rent in advance. Neil McGimpsey, chief operating officer at Lomond, told the FT that landlords previously asked international students to pay several months' rent upfront if they could not provide a UK-based guarantor. Mr McGimpsey explained that the Act now limits landlords to requesting one month's rent in advance, leading to some students struggling to provide financial assurances and access the market.
Valerie Bannister, lettings technical director at LSL Estate Agency Franchising, told the FT that the new notice rules have caused disruption. She noted that the shift away from fixed-term tenancies means students can depart after exams without paying summer rent, affecting transitions between student households.
However, the government claims the Renters' Rights Act benefits both student landlords and tenants. A spokesperson from the Ministry of Housing told the FT that the Act gives students flexibility by removing fixed tenancies. They added that it also ensures landlords can seek possession of properties in the summer for new students.