The Renters’ (Reform) Bill has already greatly impacted the private-rented sector (PRS), with many landlords selling their rental properties due to the increased legislation – most notably the abolition of section 21 ‘no fault’ evictions.
For student renters, higher prices and tougher access processes for rental accommodation are among many of the concerns that the reading of the Renters’ (Reform) Bill has created.
Many are concerned about being able to find suitable accommodation that is sufficiently close to their university, given the mass exodus of private landlords from the market over the past couple of years.
As a result, many students are seeking ways to try and get ahead when it comes to the rental process.
Because of this, rental guarantor service Housing Hand has experienced growth to its rental guarantor service this year so far.
“While the Bill has slowly made its way to its first reading – a process that has taken four years since the Government first announced a ‘new deal for renting’ – time certainly hasn’t stood still within the rental sector. Landlords have left in advance of the Bill’s passing, while the growing adoption of new technology means that things are moving swiftly so far as renters, landlords and letting agents are concerned. We are experiencing strong, sustained demand for rental guarantor services, across accommodation markets up and down the UK. The rental landscape has changed significantly over the past few years and continues to do so. While the purpose-built student accommodation (PBSA) and Build to Rent sectors have grown, the private rented sector is shrinking significantly. We have already seen the draft Renters’ (Reform) Bill have an impact on the number of people willing to act as private landlords, long before the Bill finally made it to its first reading in Parliament.”Graham Hayward, Chief Operating Officer, Housing Hand
During this time, the number of accepted student applicants has risen by 48%, with many already looking ahead to the new academic year.
Technology in the sector is now an essential performance item for accommodation providers and tenants.
The identity verification process has evolved rapidly and is now being used to enable swifter access to properties, to help streamline the moving-in process.
Hamptons reports that rents outside of London have hit a monthly average of £1,000 for the first time.
Meanwhile, many accommodation providers are reporting that rent defaults are on the rise, with many either increasing rent costs to cover losses or establishing a more stringent tenant acceptance process.