by House4Students 
The UK rental market is undergoing significant changes with the Renters’ Reform Bill, a piece of legislation aimed at improving tenant rights and reshaping landlord responsibilities. As the bill moves through Parliament, landlords, investors, and tenants need to stay informed about what’s coming. Here’s what you need to know about the latest rent reform proposals and how they could impact the student rental sector.
What is the Renters’ Reform Bill?
First introduced in 2019 and officially progressing in 2023, the Renters’ Reform Bill is designed to provide better security for tenants while maintaining a fair system for landlords. Some of the key proposed changes include:
- Abolition of Section 21 ‘No-Fault’ Evictions – Landlords will no longer be able to evict tenants without reason, increasing security for renters.
- Reforming Section 8 Evictions – A revised system will allow landlords to repossess properties in cases of unpaid rent or anti-social behaviour.
- Making All Tenancies Periodic – Fixed-term tenancies will be replaced with rolling agreements, giving tenants more flexibility.
- Introduction of a New Property Portal – Landlords will be required to register their properties and meet compliance regulations.
- Creating an Ombudsman for Tenants – A new body will oversee disputes between landlords and tenants, offering a more structured resolution process.
Compliance Regulations for Landlords
With the introduction of the New Property Portal, landlords will need to adhere to stricter compliance regulations. These may include:
- Ensuring rental properties meet minimum energy efficiency standards (EPC rating requirements are increasing).
- Keeping up with health and safety regulations, such as gas and electrical safety checks.
- Providing clear tenancy agreements that align with the new periodic tenancy rules.
- Registering all properties on the new landlord database for increased transparency.
- Complying with deposit protection and fair eviction policies to prevent unfair practices.
How Will This Impact Student Accommodation?
Student landlords and Purpose-Built Student Accommodation (PBSA) providers are seeking clarity on how the reforms will apply to student housing. Some key points to consider:
- Fixed-Term Tenancies vs. Rolling Contracts – Many landlords rely on fixed-term contracts to align with academic years. If all tenancies become periodic, there could be disruptions in student lets.
- Eviction Rules and Property Management – With Section 21 removals, landlords may need to prove valid grounds for eviction, making tenant screening more critical.
- Compliance Costs – The new property portal will introduce more regulations, increasing compliance costs for landlords.
Unintended Consequences of the Reform
While the bill aims to protect tenants, it may also have unintended consequences, including:
- Higher Rents – With increased compliance costs and fewer eviction rights, landlords may raise rents to balance the financial risk.
- Landlord Exodus – Some landlords, particularly smaller ones, may exit the market, reducing rental supply and further increasing rent prices.
- More Selective Tenant Screening – With stricter eviction laws, landlords may become more cautious in choosing tenants, potentially making it harder for certain groups to secure housing.
What This Means for Investors
While the Renters’ Reform Bill is set to improve tenant security, it also introduces potential challenges for landlords. However, student accommodation remains a strong investment sector, as high demand for student housing continues to drive rental yields. Investors who work with fully managed PBSA properties or high-quality HMOs in university towns like Reading will still benefit from strong occupancy rates and rental demand.
Conclusion
The UK rental market is evolving, and landlords need to stay ahead of the Renters’ Reform Bill to ensure compliance and profitability. While some aspects of the legislation may present challenges, the student rental sector remains an attractive investment with the right strategy.
If you’re looking for guidance on student property investment in Reading, House 4 Students can help. Get in touch today to explore opportunities and stay ahead of industry changes!
