Why pay Rent & Accommodation costs 3rd term 2020? - it's a Dilemma

Student's really must be wondering what to do about their third term installment of rent when they have left to go "home home".

Some accommodation providers have released their tenants from their contracts where they have  chosen to return home due to the current pandemic. Others accommodation providers have not and Student Unions and others are lobbying hard for the cause.

Here is some information to help those wondering what to do and considering their options.

• Most rent payments particularly to the Higher Education Institutions and large student accommodation providers are paid by direct debit. Student's often do not realise that they can cancel direct debits themselves with their banks. Banks often need at least 3 working days notice to amend or cancel direct debits. This may be an option to choose while negotiating with the landlord about a way forward. 

Student Bedroom

• Most accommodation contracts or tenancy contracts are valid legal agreements and the current pandemic does not render them void.
• It is an option for a tenant to write to the landlord or accommodation provider and ask for their discretion to release them early from the terms of the contract. However the landlord is not obliged to do so.
• For most Assured Shorthold agreements, action against a tenant for not paying their rent (arrears) can not be taken (by the landlord or accommodation provider) until 2 months rent arrears has accrued. Generally this means that a landlord can not begin Possession Proceedings on the grounds of rent arrears until 2 months rent is owing.
• Due to the pandemic, the government introduced new rules which extend this period to 3 months, introduced as of 26th March.
• So for many students this is likely to take them to beyond the end of their contract. This 3 month grace period could allow time for negotiations and the outcome of lobbying to be reached. 

Shelter provide information on what action might be taken if the landlord does not waive the rent for the third term and the tenant does not pay the rent they are liable for. 

Student in accommodation

It is an interesting dilemma, as some students are having to stay in their rented accommodation. Perhaps because they are from overseas or they are estranged from their family or are a care leaver. Should these students have to pay their rent while others with the same legal contractual obligation not have to pay? Given that the funders appear to be awarding the full third term installment of maintenance loan, this would make those students with no "home home" to return to, financially worse off. 

Also worth remembering is that not all private landlords are able to afford the unexpected loss of income either. 

It is a tricky matter, so do always seek specialist housing advice and guidance (see below). 

For Housing Advice see

www.shelter.org.uk 

www.citizensadvice.org.uk

www.nationaldebtline.org.uk