Half of student landlords plan to market their properties later following the introduction of the Renters’ Rights Act, according to new research by Accommodation for Students.
The findings suggest the long-established student lettings cycle, which has traditionally seen landlords market properties as early as October and November for the following academic year, could be set for one of its biggest changes in decades.
The shift is being driven by the introduction of Ground 4A, the new student possession ground, which means landlords wishing to rely on it cannot sign tenancy agreements more than six months before the tenancy begins.
Traditionally, marketing student accommodation almost a year in advance has given landlords confidence that properties would be let before the start of the academic year. However, landlords wishing to rely on Ground 4A are now having to reconsider when they market properties and enter into tenancy agreements in order to retain access to the new possession ground.
TENANCY AGREEMENT RISKS
The survey found that almost three-quarters (73%) of landlords intend to use Ground 4A, while 65% were aware that signing tenancy agreements too far in advance could affect their ability to rely on it.
While some landlords are expected to delay marketing altogether, others are likely to continue advertising properties during the traditional autumn period but postpone signing tenancy agreements until they fall within the six-month window.
However, this creates practical challenges for landlords and letting agents. Holding deposit rules mean landlords cannot simply reserve properties indefinitely before a tenancy agreement is signed, creating a gap between identifying prospective tenants and entering into a legally compliant tenancy.
To help address this challenge, Accommodation for Students says it will shortly launch a pre-let agreement solution designed to enable landlords and students to commit to a property before the tenancy agreement is signed, while remaining compliant with the new legislation.
Simon Thompson, director and founder of Accommodation for Students, says: “The student lettings market has operated in broadly the same way for many years, with landlords traditionally marketing properties almost a year before students move in.
“Our research suggests many landlords are now reviewing that approach as they adapt to the new legislation. While the traditional autumn lettings season is not going to disappear overnight, we could see more properties coming onto the market later than the sector has been used to.”
The findings suggest that while October and November are likely to remain important months for student property searches, more accommodation could become available later in the academic year as landlords adjust their marketing strategies.
