Renters’ Rights Bill

Alex Sobel Excerpts

Wednesday 9th October 2024 Commons Chamber

[Alex Sobel (Leeds Central and Headingley) (Lab/Co-op)]

The Renters’ Rights Bill will bring much-needed security and safety to renters. I praise the Minister for Housing and Planning and the Secretary of State for bringing forward the Bill, which is much stronger than the previous Government’s Bill.

As the MP for a constituency with one of the largest private rented housing sectors in the UK—it has 17,740 private rental properties, the majority of which are rented to students—I want to use the debate to highlight problems faced by student renters, both in my constituency and across the country. Students are shouldering the burden of 14 years of Tory mismanagement of our economy. The dual housing and cost of living crisis is being compounded by landlords making it increasingly difficult for many students to secure housing. This leaves many in increasingly precarious situations.

Students in my constituency have told me of landlords asking them not just for a UK guarantor—the criterion for which is that the guarantor must own a UK property—but for deposits of up to 100% of annual rent. Such requirements disproportionately affect working-class students, care leavers, and those estranged from their families—groups that are already more vulnerable to poorer economic, educational and health outcomes. International students, too, face significant challenges, as most do not have family members with property in the UK. As one of my constituents, an international postgraduate student at Leeds University, told me:

“My only viable option was using the guarantor service ‘Housing Hand’, which costs me an additional £50 a month on top of rent. I am a PhD student receiving the UKRI minimum stipend…The cost of living for food and rent alone is already difficult on this stipend, and, during the final week before the stipend is paid each month, I often struggle to maintain a healthy and balanced diet due to financial strain.”

Research conducted by students from the Centre for Homelessness Impact found that just 36% of universities provide help with rent guarantors, that even fewer provide a rent guarantor service for students, and that, as universities themselves are facing extreme financial difficulties, such a service will become ever more unlikely.

Renting as a student is already an uphill struggle. We know, for example, that student accommodation prices have increased by 61% since 2012. Information from the National Union of Students shows that two in five students have considered dropping out because of the cost of rent. When we are trying to encourage people to attend our world-leading institutions, which strengthen the skills potential of our country’s workforce, why do we put up so many barriers?

Our universities are the UK’s strongest source of soft power. International students in particular are left with nothing but bad choices: they must either find a UK guarantor or pay six months’ rent, or more, up front to their landlord. As one student told the all-party group for students:

“International students often face more challenges than home students. We have heard stories of students paying months of rent, only to find out that they have been scammed, and that the place they thought they’d secured does not even exist.”

It is for those reasons that I would like the Government to consider banning landlords from demanding either UK rent guarantors or huge up-front payments, and perhaps limiting deposits to just three months’ rent. I would also like them to end the pressure for joint tenancies to be signed too early in the academic year, so that students need not commit to accommodation before they are ready, creating artificial panic in the market. Ultimately, we must remove barriers for care leavers, students and international students. We have heard from students that access to a rent guarantor is often a determining factor in their ability to continue their degree, or even access a university education in the first place.

Everyone deserves the opportunity to succeed in their academic journey without the added stress of housing insecurity. The Government have the opportunity, through this Bill, to break down a major barrier to all students’ right to pursue higher education. I hope that they will work with me on this.