Below is an overview of the proposed amendments and how they may affect your student rental properties in Bournemouth.

1.  Ending the Early Sign-Up ‘Arms Race’

A key objective of the proposed legislation is to alleviate the pressure students often feel to sign tenancy agreements far in advance. Lawmakers argue that students frequently commit to properties before forming stable friendship groups or thoroughly assessing accommodation options.

Proposed Change

• Restricting Early Tenancy Agreements: A new rule (referred to as Ground 4A) would prevent a landlord from evicting student tenants on the basis that the contract was signed more than six months before the moving-in date.

Potential Impact for Landlords

• You may need to adjust the timing of when you market your properties and sign tenancy agreements.
• Since the Bill doesn’t ban early agreements outright, you can still negotiate contracts more than six months in advance, but you may face restrictions if you need to regain possession before the tenancy begins.

2. Moving from Assured Shorthold to Periodic Tenancies

Another proposed measure is the shift from traditional assured shorthold tenancies (ASTs) to periodic tenancies in the student sector. This could reduce the certainty of fixed-term rentals that many landlords currently rely on, particularly for properties operating on a strict academic-year cycle.

Potential Impact for Landlords

• Under a periodic tenancy, it could become more challenging to prepare properties for new occupants each academic year.
• Landlords may need to revise tenancy management practices to adapt to new notice periods and re-letting procedures.

3. Limiting Rent in Advance

Landlords often accept multiple months of rent upfront to secure reliable income and minimize financial risk—especially with international students or those without conventional references. Under the proposed rules, landlords would be more limited in how much rent they can request in advance.

Proposed Change

• Typically, only one month’s rent and a standard deposit of five or six weeks’ rent would be permissible.
• Landlords would still be able to request guarantors and conduct affordability checks.

Potential Impact for Landlords

• While these measures aim to protect financially vulnerable tenants, they could make it more difficult to accommodate overseas students or tenants with unconventional financial backgrounds.
• We recommend reviewing your referencing procedures and exploring reliable guarantor options to maintain peace of mind.

4. Guarantor Liability After a Tenant’s Death

Another aspect of the Bill addresses the liability of guarantors if a tenant passes away during the tenancy. The government intends to shield bereaved family members or friends from the financial obligations of a deceased tenant.

Potential Impact for Landlords

• This amendment provides clarity and reduces legal and emotional complexities for guarantors.
• While tragic circumstances are rare, it’s important to understand and adhere to these new guidelines if they pass.

5. Preparing for Implementation

Though not yet law, these proposals could be approved and implemented relatively quickly—some as early as this summer. As a landlord, it is crucial to stay informed and adapt your processes in advance to ensure compliance. This may include:

1. Adjusting Your Marketing Calendar: Plan for potential restrictions on early sign-ups.
2. Reviewing Tenancy Contracts: Explore periodic tenancy agreements and ensure they align with any new legal requirements.
3. Revisiting Your Financial Vetting Procedures: Strengthen referencing and guarantor policies, considering limits on advance rent.
4. Updating Your Legal Knowledge: Keep close track of developments so you can respond promptly once the legislation is finalized.

How Bournemouth Student Lettings Can Help

At Bournemouth Student Lettings, our experienced team is dedicated to making sure your properties remain compliant and profitable in a rapidly evolving sector. We offer:

• Expert Advice: Stay current with legislative updates to protect your investments.
• Tailored Services: From tenant sourcing to full management, we adapt our services to align with new regulations.
• Continuous Support: We’re always on hand to answer queries and provide guidance on best practices for student rentals.

If you have any questions or concerns about how these proposed changes might affect your property portfolio, please get in touch with us. We are here to guide you through every step, ensuring a smooth transition as these legislative amendments take shape.

Bournemouth Student Lettings – supporting landlords with professional, informed, and reliable student rental services.