Tag: tenancy

Student renters face a financial crisis due to the pandemic

  • Over two thirds of student renters (69 per cent) are concerned about their ability to pay their rent
  • A third of students believe that they would not be allowed to leave their tenancy agreement early due to the pandemic
  • 57 per cent of those who have been self-isolating have not received any support from their accommodation provider
  • 22 per cent of students have been unable to pay their rent in full over the past 4 month

Over two thirds of student renters (69 per cent) are worried about their ability to pay rent with around a quarter having been unable to pay rent (22 per cent) or bills (27 per cent) during the pandemic, a new survey from NUS (National Union of Students) has found. International students and students of colour are most likely to be extremely concerned.

Almost half of students live in rented accommodation of some sort, with around a third believing they would not be allowed to leave their tenancy agreement early due to the pandemic.

These problems are likely to be exacerbated with the most recent lockdown announcement that has left the majority of student renters still liable to pay for accommodation that they are not allowed to access.

The Coronavirus and Students Survey phase III took place in November and involved over 4,000 students, building upon the previous research issued by NUS in April and September 2020. A quarter of students have had to self-isolate during last (Autumn) term, or are currently self-isolating, while a small proportion have had to lockdown.

57 per cent of those who have been self-isolating have not received any support from their accommodation provider. Students have called for more regular check-ins, financial support and food deliveries to support them.

The proportion of students living with parents/guardians has gone up since September, now representing 30 per cent of students compared to 21 per cent. Prior to the pandemic a quarter of students were living with parents indicating some students have had to reconsider their living arrangements as a result of the pandemic.

Hillary Gyebi-Ababio, NUS Vice-President for Higher Education, said: “It is astonishing that the UK government has placed students under lockdown yet are still requiring them to pay rent for accommodation that they cannot legally access. It goes to show the level of disregard that this government has for students.

“We need rent rebates immediately to ensure that students are not out of pocket for rental payments of properties they are not living in. Over two-thirds of students are already concerned about their ability to make rental payments, and this will have only increased with the most recent lockdown announcement. 

“Students deserve better than to be financially punished for following public health guidance.”

Ellen Fearon, NUS-USI President, said: “Governments have been dodging the problems facing student renters throughout the whole of this pandemic. We have consistently raised the fact that students are in a unique situation, being unable to claim Universal Credit and therefore unable to access housing support if they lose their income, but these calls have fallen on deaf ears. 

“In September students were brought back onto campuses only for many classes to be moved online in a matter of weeks and for some students to find themselves effectively locked in their halls. It’s not surprising that so many students feel they have been exploited for profit. Students deserve better than to be used to prop up a failing business model.”

The full survey results are available here.

Landlords encouraged to look forward to new academic year

SafeDeposits Scotland is working with landlords who provide student accommodation to help overcome challenges brought on by Covid-19, as the number of overseas students returning to the UK drops.  

During lockdown, the not-for-profit organisation reached out to landlords and tenants to provide advice and information around changes to the sector due to the pandemic. It works closely with all landlords including those that have been impacted by the decrease in students enrolling this academic year.

The Glasgow-based tenancy deposit scheme holds deposits on behalf of landlords and agents in line with government regulations designed to ensure responsible leasing.

As the sector continues to work towards pre-Covid-19 levels of activity, SafeDeposits Scotland is urging landlords to focus on providing the best renting experience for current tenants, while considering options to diversify their future tenant base.

Mike Smith, operations manager at SafeDeposits Scotland, said: “UK universities expect to see a £2.6 billion shortfall in the next academic year due to the pandemic, with 20% of domestic students not returning to university, and 75% of overseas students not enrolling this September.

“Pre-lockdown, demand for student accommodation in Scotland was notably high. Boasting some of the UK’s top universities, it’s no surprise areas including Aberdeen, Dundee, St Andrews, Glasgow and Edinburgh experienced an influx of students each year looking for housing.

But despite the drop in numbers of students expected to enrol this year, it’s evident there’s faith in the resilience of the sector, with a number of high-profile developments announced in the past month alone.

“Two recent Edinburgh examples of long-term growth within the sector include the new 120-bed purpose built student accommodation complex set to be built at Haymarket, while Unite Student has confirmed plans for a £24 million build of student flats at Meadowbank.”

To understand the concerns of landlords in the private rented sector during these unprecedented times more clearly, SafeDeposits Scotland carried out research to find out how they have coped during lockdown and how they feel about leasing property in the new academic year. 

Mike explained: “We’re confident demand for student housing will return, whether it is in the private rented sector or for purpose-built accommodation. However, until we have a clearer picture of what future academic enrolment figures are like, landlords could consider alternative ways to lease properties.

A good example is renting to young professionals that are looking to move away from home for the first time. The demands of these tenants are similar to students in the private rented sector, and it can be a way of keeping properties occupied until we know more about the future of higher education. 

“We recently carried out research with our landlords that are renting to students. This revealed that almost half (43%) secured new tenancies during lockdown while almost three quarters (73%) of this group expressed concerns around what this academic year will look like for them. 

“To alleviate concerns, we’ve been working closely with landlords to ensure the tenants they do have in place now have the best experience. To support, we’ve moved our face-to-face workshops online to offer free advice and information. Our Charitable Trust has also recently announced its funding towards research being carried out by the University of Stirling. This research is exploring the benefits of allowing tenants more flexibility to make a house a home.

“We believe having happy tenants leads to longer tenancies, creating more vibrant communities where people want to live. This boosts local economies and helps increase demand for rental property in that area.

“The property sector has been resilient during past economic challenges, but the full impact of the pandemic is yet to be seen. We know the government is working hard to support international students hoping to return to Scotland to continue their higher education studies. This will have a hugely positive impact for our landlords who rely on overseas students to rent their properties, and hopefully we will see the results of this work.

“In the short term, we urge landlords to implement safety guidance from the Scottish Government and manage risk wherever possible, while tenants adhere to the measures put in place.”