Government’s HMO plans risk undermining housing supply

The National Residential Landlord Association (NRLA) warns that the government’s plan to restrict the Ground 4A exemption in the Renters’ Rights Bill to HMOs with three or more bedrooms could harm the student rental market. Currently, Ground 4A allows landlords to regain possession of student housing in line with the academic calendar. However, 32% of off-street student housing consists of one- and two-bedroom properties, which would be excluded under the proposed restriction.

The NRLA argues that this exclusion risks reducing student housing supply, increasing competition and rents, and leaving students with fewer options. They contend this change could discourage landlords from staying in the student rental market, especially as fixed-term tenancies will be abolished under the Bill.

The association urges the government to include smaller student homes in Ground 4A, highlighting that such properties are vital for final-year and postgraduate students seeking quieter accommodations. They believe excluding these homes won’t benefit vulnerable tenants and will disrupt the student rental cycle.