For many landlords, the increasing complexity of the rental property sector has made what was once a relatively simple business venture an increasingly complex and onerous undertaking, with the growing array of demands and changing regulations proving challenging to keep up with.
Some have responded to this by selling up and getting out of the property sector, but others have found that by working with property management agents like us, they can access the help and expertise they need to remain active in the sector, placing the management of their rental properties in the hands who can run them in changing times.
The biggest change yet to the property sector in decades has been the recent passing of the Renters’ Rights Act. The Act, devised by the Labour government, had many similarities to reforms the previous Conservative government had been pushing through parliament before their Renters Reform Bill lapsed when Parliament was dissolved for the 2024 election.
Why Is There Concern About The Impact Of The Act On Student Lets?
However, some specific elements of the new act have caused major concerns in parts of the rental sector. One of these is a change that is expected to have major ramifications for the student rental market.
The National Residential Landlords Association (NRLA) has warned that the timetable for the implementation of the act, which was confirmed this month, poses a major problem.
Because the implementation period begins on May 1st, any landlord taking possession of a housing of multiple occupancy (HMO) student property at this time will, because there is a four-month notice period required under Ground 4A, not be able to get the property back until September 1st.
This means they will not be able to regain possession of their properties by the end of August 2026, too late to rent them out to incoming students whose tenancies will be due to start on September 1st.
According to the NRLA, this will make the shortage of student housing worse. Its chief executive, Ben Beadle, said: “The failure to protect the annual cycle of all student housing will shut people out of higher education and make it harder for others to plan where they will live.“
How Much Uncertainty Is The Renters’ Rights Act Creating?
This is far from the first time that the NRLA has raised concerns about the implementation of the Act. When it received royal assent in October, Mr Beadle called for the implementation of the Act to take place over at least a six-month period to provide as much certainty and adjustment time as possible.
He also warned that the reforms must not deter landlords from investing in the private rental sector, as this is so important to the UK economy.
To protect against this risk, the government “should commit to ongoing monitoring of their impact and ensure its findings are published,” Mr Beadle added.
As the new law beds in, having experts in property management helping with your rental property can be vital in helping you steer through the potentially choppy waters, as the new law beds in, with the potential for some issues to be a problem early on and then settle down, or amendments to be made to tackle clear shortcomings.
With our help, we can enable long-term investors to steer through the shorter-term teething troubles as the ideals behind the new reforms encounter the reality of a complex and diverse rental sector.
