Tenancy law 'policy spiral' threatens new student housing supply
What is the ‘policy spiral’?
A new report warns that repeated changes to tenancy laws could create a ‘policy spiral’ that threatens the supply of new student housing. The term refers to the cycle where each new reform triggers further uncertainty, making it harder for developers to plan and invest in purpose-built student accommodation.
How could this affect student housing supply?
The report argues that the cumulative effect of continuous tenancy-law adjustments may deter investors and developers from building new student housing. With demand from students rising, any reduction in new supply could exacerbate the existing shortage and push rents higher, particularly in areas with high student populations.
What can be done?
The report suggests that policymakers should aim for a more stable and predictable tenancy framework. By avoiding frequent, sweeping changes, they could reduce the policy uncertainty that discourages investment. A clear, long-term approach would help ensure that student housing supply can keep pace with demand.
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