Studentification and Plans to Restrict HMOs

Expert student landlord Terry Samuels gives his views on the government's latest plans to control the so called phenomenon of 'studentification' through a remodeled planning system:

"There has been a continuous stream of government legislation aimed at the rental sector in recent years. This is just one more fence to leap for potential landlords and may stop them from entering the market. Would new landlords buy a house on the chance that it will be granted planning permission as an HMO? The growing complexity of letting properties will ensure that letting agencies continue to prosper!

Students are a captive group and are limited by transport and financial constraints as to where they can live. If the market is restricted through planning quotas then this is likely to lead to less competition and therefore higher rents in areas around universities. This may have a knock on effect to other users such as young professionals, benefit claimants and those who have to share housing because of economic constraints. It may well have the opposite effect to diversification and create more student or other types of ghettos.

Is more purpose built student accommodation in the community the answer? Will this stop the perceived anti-social behaviour of students or the creation of ‘ghost areas’ during vacations?

Students can’t wait to get out of their halls to learn about living in their ‘sustainable cummunities’. The development of private, purpose built university style halls within the community is escalating. Compare the cost of living in one of these places with a group of students living together in an HMO, add on university fees and an average student debt of £17,500 and you appreciate why many students are forced to live in a smaller, cheaper HMO. Purpose built accommodation will not stop anti-social behaviour. Legislation specifically aimed at behaviour might have a greater effect.

‘Ghost areas’ will not go away, however when the ‘ghosts’ return from vacation the businesses that depend on the local student population will continue to prosper.

Is the wider community of mature owner-occupiers ready for students to ‘break out’ of cheaper, poorer student housing areas to live in these quality-housing precincts? Not in my back yard!

Perhaps the government will provide tax breaks and other incentives to encourage landlords to purchase properties in more mature areas? I doubt it!

What next? Holiday homes?"

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