Phil Spencer: The controversial law that will have a huge impact on student renting

A record 263,000 young people will make the jump from school to a UK university or college this month, and for many this will mean living away from home for the first time. Renting your first place is a rite of passage, even if student accommodation has moved on since my days as an undergraduate in London and a new law will have a big impact on renters. Amid the butterflies and last-minute purchases of kettles and toasters, here’s what new students – and their parents – need to know about their options, rights and what to avoid. Shorts Which type of accommodation is best? Student accommodation is broadly split into three types. Halls of residence: Typically owned or operated by the university or college, these tend to be on, or near the campus. They may be basic, but with bills usually included they’re a convenient and safe option for first-year students – who are often given priority. Purpose-built student accommodation (PBSA): These are typically modern blocks, located centrally in university towns and cities. Many are built to a high spec, managed by a private company and have on-site security. The plushest have gyms, cinema rooms, leisure and study areas, making them feel like a hotel – with high rents to match. Houses in multiple occupation (HMOs): Renting a house or flat from a landlord gives students both freedom and responsibility. But the quality and size of rooms varies, and HMOs seldom enjoy the cleaning services or security found in halls of residence and many PBSAs. There are no exact figures but student groups say around 20 per cent live in halls, with most of the rest in HMOs – although PBSA is becoming increasingly popular. What to consider Students have more considerations than most when choosing accommodation. Budget, transport links and local amenities all matter, as they do for everyone. But pricing varies a lot, so comparing like with like is tricky. Halls of residence are a good option for freshers, as they offer an introduction to student life and a chance to make friends. They’re also straightforward as the rent will typically include all bills, and potentially meals too. However, places can be limited and may not be available to second and third-year students. PBSA is a halfway house between halls and the classic student house. It offers independent living, often in the city centre, but those luxury facilities can come with strings attached. Rents tend to be higher, PBSA landlords can charge rent upfront and it may be hard to break your tenancy if you need to leave early. Living in an HMO offers the most independence. The rent is unlikely to include utilities, so students will need to sort out their own electricity, water and broadband bills, and register with the local council. They’ll also be responsible for day-to-day cleaning, and everything from the bins to the garden. The freedom to throw parties is a perk that shouldn’t be abused; living in a residential area means your neighbours will include families as well as students. Bad landlords are rarer than the headlines suggest, but they do exist. Students in HMOs have both rights and responsibilities when it comes to repairs and upkeep, and must leave the home in a good condition if they want their deposit returned at the end of their tenancy. How new laws will affect student renting The The Renters’ Rights Act (RRA), kicked in back in May and bans some evictions, limits rent rises and offers greater redress for tenants treated poorly by landlords. So on the face of it, it’s great news for student tenants. Part of the Act is that it replaces fixed-term tenancies with rolling tenancies that a tenant can generally end by giving two months’ notice in writing. However, it only came into force in recently, so it’s early days and the way the act relates to students is complicated. University-owned halls of residence are exempt from the RRA, as are some PBSA buildings. In both cases, students have to leave their accommodation at the end of the academic year, so the notice rule doesn’t apply. By contrast, students in all HMOs and some PBSA blocks receive most of the new act’s protections. This means they’ll likely be on a rolling tenancy, which would allow them to leave earlier, or stay on after they finish their studies, depending on when they give notice. This divergence is controversial, so I expect there may be changes after this academic year to make the act easier to implement and understand. Mum and dad are more than just a free removal service It’s a time-honoured job for parents to help their student children – stand by for emergency bank transfers – but there’s a more formal role emerging too. Landlords increasingly ask students to nominate a guarantor before agreeing to a tenancy. A guarantor is someone who is legally responsible for unpaid rent or property damage if the tenant fails to pay. Most parents are happy to shoulder this responsibility as their children fly the nest, but legal contracts should never be taken lightly and you should discuss before signing. My checklist for finding what’s right for you For anything other than a hall of residence, finding the right accommodation, in the right place, at the right price takes time and energy. Here are my five golden rules for finding the best student accommodation: Location – being close to friends and lectures will help you make the most of student life Budget – make sure you compare not just the rent, but also service charges and bills Condition – check for damp and comfort, and the quality of fixtures and fittings Security – you want safety, especially as you move to an unfamiliar place Visit – don’t just do an online tour, always visit the property before signing a contract It pays to be organised, and I’ve listed all the things you need to remember in an eBook, which you can read for free. Phil Spencer is a property expert and co-presenter of Channel 4 show Location, Location, Location. He is also the founder of Move iQ