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Major housing association stands firm against pressure to stop student rent charges during COVID-19 crisis
A major housing association is refusing to bow to pressure over its decision to continue charging rent on student accommodation despite university closures during the coronavirus pandemic.
Sanctuary Students – a subsidiary of 101,000-home housing association Sanctuary Group – and has faced heavy criticism in recent weeks for refusing to waive rents or allow contracts to be terminated early.
Universities across the country are shut in response to the coronavirus pandemic, with many students returning to their permanent homes.
The National Union of Students (NUS) has written an open letter to the National Housing Federation asking the trade body to tell its members to “reconsider their actions”.
Singling out Sanctuary and Optivo, the letter argues it “is antithetical to the values on which [housing associations] are founded if they do not act to protect student renters”.
Optivo Students has since confirmed that it will release students on 50-week contracts 10 weeks early – a measure which effectively prevents them from having to pay rent during the summer term.
Rent strikes are being planned by Sanctuary residents at the London School of Economics and SOAS University of London, while Optivo had also been attacked by a campaign group Liberate the University, organising strikes.
Another housing association, A2Dominion, backed down earlier this month over its refusal to waive rents next term at two student blocks in Bristol.
Many universities have offered students who are not staying in their accommodation the chance to avoid paying rent during the closures, as have major private sector providers Unite Students and Liberty Living.
Student maintenance loans will still be paid – though the NUS said the money available rarely covers rent costs.
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One woman whose son lives in a Sanctuary Students block in Liverpool told Inside Housing she chose the accommodation specifically because it is run by a housing association.
But earlier this month she was charged more than £1,800 for her son’s summer term rent without communication from Sanctuary.
In a statement on its website, Sanctuary Students said: “While we understand that you must make the right decision for your health and well-being, and that of your family’s, we regret that we cannot terminate any contracts early if you have decided to leave your accommodation.
“We realise this will be disappointing for you, but it is not a decision we have taken lightly. Many of our students rely on us to continue providing them with a safe and secure home, and without us they would be at risk of becoming homeless.
“We have been informed that student loan payments will continue as normal through this period and the government is encouraging tenants living in rented accommodation to pay their rent as normal.”
A spokesperson for Sanctuary added that it will offer “flexible payment options through an agreed payment plan” for students with financial concerns.
According to its website, Sanctuary Students provides accommodation for more than 10,000 university-goers across the UK – with much of it inherited from failed housing association Cosmopolitan Housing Group following a rescue merger.
A spokesperson for Optivo told Inside Housing: “We care about the welfare of our students and will continue to do all we can to support them during the COVID-19 crisis and this unprecedented situation.
“All of our student buildings remain open and have students in residence. Our staff are working hard to provide a safe environment and to assist those students who remain.
“We’re closely following government advice and guidelines to protect our staff and residents.
“We’re providing a number of flexibilities to support our students during these difficult times, including releasing students on 50-week contracts 10 weeks early. While this rent reduction affects our ability to support social housing, we believe it’s the right step to take to help our students.”
A statement on the Optivo Students website previously said it had taken the “tough” decision not to allow rent refunds or early contract terminations, but has changed since Thursday (23 April) evening.
It had previously said that as a not-for-profit organisation, any loss of income impacted its “ability to provide services for our residents” which are now needed “more than ever”.
The statement now says: “We’re providing a number of flexibilities to support you during these difficult times, including releasing students on 50-week contracts 10 weeks early. We’ll contact you directly with more information about this in the coming days.”
Update: at 14.44pm at 24/04/20 the story was updated to reflect that Optivo has now confirmed it is allowing students to terminate their contracts early.
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