Yorkshire Post · 20 Nov 2024 · Alex Sobel
As an MP representing students in all the universities in Leeds I hear so
many issues about student housing, sadly some of which were happening when I was on the executive of Leeds University Union many years ago. Some, like the ever earlier attempts to let out homes, rising rent in advance, and the need for guarantors, have become supercharged.
Last year I attended an event organised by Leeds University Union where I heard from many students about these issues, especially guarantors and the expensive need for a guarantor service.
As a longstanding member of the All-Party Parliamentary Group (APPG) on Students, I appreciate the crucial role in ensuring that the voices and needs of students are heard and represented in Parliament.
In the last Parliament, following meetings in student unions, the APPG meetings on
stu- dent housing looked at the Renters’ Reform Bill and the issue of student housing more broadly.
These meetings highlighted the pressing need for fair and affordable housing for students, while a lightning rod issue was the struggle students face with the widespread practice of asking for rent up front and guarantors. What came out of the meetings and the National Union of Students’ work is just how discriminatory demands for rent up front and guarantors can be.
Students from deprived socio-economic backgrounds, those estranged from family, those who’ve come from care, and international students in particular, struggle to meet these requirements. These requirements also have an impact on their families. A guarantor is typically expected to be a parent or relative who owns property in the UK and/or earns a substantial income.
So, even if a student renter does manage to find someone suitable, the responsibility can be onerous. The guarantor has to pay the rent should a tenant default – but they can also be expected to pay for other costs, such as any damage. In a shared property, a guarantor can find themselves liable for damage caused by another tenant.
It is not uncommon for student renters to be asked for non-refundable holding fees while guarantors are vetted. For those who can’t secure a guarantor there are guarantor schemes, where private companies act as a guarantor for a tenant, but this is not a free ser- vice. What we see is that the most vulnerable renters are financially penalised.
Rent in advance is another common landlord ask, and one which often goes hand-in-hand with the demand for a guarantor – or be used where someone is not able to provide an approved guarantor. Students can be asked for six to 12 months’ rent upfront, a practice which is particularly common with international students.
The Renters’ Rights Bill (RRB) was a flawed piece of legislation, which did nothing to address these concerns. Labour’s new Renters’ Rights Bill is a vast improvement, and a huge opportunity to take action on rent upfront and guarantor requirements.
The cost-of-living crisis has had a devastating effect on students, as it has on many people, and there is evidence financial pressures are putting people off from studying. I hope my colleagues will give serious consideration to students’ arguments and help make the necessary changes to the Bill.