Student Accommodation: How the Renters’ Rights Act Impacts Student Lets

BACKGROUND

The far-reaching impact of the Renters’ Rights Act, which received royal assent on 27 October 2025, on England’s private rental market has already been widely discussed. Arguably, the most disruptive changes will be:
 

1. The abolition of fixed-term assured shorthold tenancies;
2. The banning of no-fault evictions; and
3. The prohibition on requiring rent to be paid more than one month in advance.

Whilst the Bill was going through parliament there was much debate and discussion regarding the impact these changes would have on student accommodation. Out of necessity to the ongoing viability of student lets, there are various exemptions and differences in how these rules will apply to student accommodation.

This guide assumes a basic level of understanding of how the new tenancy regime applies generally. Please see our previous article here for more information.

INTRODUCTION
 

Lettings of student accommodation which are provided by specified educational institutions such as universities and colleges are already outside the AST regime and so they are unaffected by the changes with those establishments still able to grant fixed term tenancies and utilise the existing s21 procedure. For the purposes of this article, we will therefore focus on the remaining three distinct categories of student accommodation that receive different treatment under the Act.

1. PBSA (Purpose-Built Student Accommodation) - for the purposes of the Act a property is considered PBSA if:
   1. The whole or part of the building is designed or adapted for occupation solely or principally by students at a qualifying institution; and
   2. Accommodation is managed under an approved housing management code of practice (for example the ANUK/Unipol National Code for accommodation owned or managed by non educational establishments).
2. Non-PBSA student HMOs – student accommodation that is provided by private landlords and is operated as an HMO. These are subject to the new tenancy regime, and a new specific ground (Ground 4A) is being introduced enabling such tenancies to be terminated at the end of each academic year.
3. Non-PBSA, non-HMO student lets – this category includes individual one or two-bed flats or studios within general PRS blocks occupied by one or two students. As these are neither HMOs nor PBSA, the Act provides no student-specific exemptions for them and the new tenancy regime will apply in the same way as it will for non-student lettings.

TENANCY LENGTH
 

The Act converts existing ASTs into assured periodic tenancies from day one and Section 21 “no-fault” evictions are abolished. These changes will be in force from 1 May 2026 and all new lettings that would formerly have been issued as ASTs will be subject to these new rules.

For student landlords, the key concern is how they can maintain the ability to:

• End tenancies at the end of the academic year;
• Re-let to the next cohort of students; and
• Avoid tenancies overrunning into the next academic cycle.

PBSA
 

These types of letting will be largely exempt from the many changes that are being introduced. As a result, PBSA landlords will continue to be able to:

• Use fixed-term contracts aligning with the academic calendar; and
• Regain possession at the end of the term.

Non-PBSA Student HMOs
 

Whilst the Act applies to non-PBSA student HMOs, the Act directly addresses the concerns of these landlords through the creation of a new ground, Ground 4A, for possession under Schedule 2 of the Housing Act 1988. Ground 4A allows landlords to regain possession each summer (between 1 June and 30 September in each year) if certain conditions are met.

For student ASTs in HMOs already in place when the Act begins, the Act will apply but landlords can ensure that Ground 4A will be available to them by serving the required written statement within 28 days of the Act’s commencement, rather than before the tenancy started.

To rely on Ground 4A for new tenancies granted after the Act comes into force landlords must ensure:

• The property is an HMO or forms part of one;
• The tenancy is granted no more than six months before it starts;
• All tenants must be full-time students or reasonably expected to become full-time students;
• A written statement is provided to each tenant before the tenancy starts confirming:
  • the tenants meet the student test; and
  • they intend to re-let to students in the next academic year.
• A possession notice relying on Ground 4A must be served 4 months before the proposed date of possession which must be between 1 June and 30 September; and
• The landlord genuinely intends to re-let to students after the current tenancy ends.

Students will be able to give two months’ notice at any point to terminate their tenancies, even if mid-year. This does therefore leave landlords at risk from students who drop out of university mid-year.

Non PBSA, Non-HMO Student Lets
 

Non-PBSA, non-HMO properties do not benefit from student-specific protections. So, for example, any studios, one bed or two bed flats within a non-PBSA block that are let to students by private landlords will be subject to the new tenancy regime i.e. no fixed terms and no student-specific ground for possession at the end of an academic year.

IMPACT ON RENT PAYMENTS
 

The Act introduces the following restrictions that affect rents:

• No rent or other payment may be taken before the tenancy starts, other than a holding deposit of no more than one week’s rent;
• Landlords cannot require a tenant to pay more than one month’s rent upfront; and
• Bidding wars are banned.

For student landlords the key concern is how this will impact their income stream and, as is the case for tenancy length, the rules apply differently depending on the type of accommodation.

As PBSA is generally excluded from the new tenancy regime, PBSA providers may continue to:

• Take advance payments before the start date; and
• Charge more than one months’ rent up front – PBSA provides can even collect the full rent for the year in advance.

For non-PBSA  providers, all restrictions on rent payments apply. This means:

• Landlords cannot collect rent in advance of the tenancy agreement being entered into – for HMO landlords who will be hoping to rely on Ground 4A, this will in essence prevent them from collecting any rent in January – March (the usual signing period) for the following academic year;
• Landlords cannot require termly rent instalments or several months’ rent upfront. One month rent plus the standard tenancy deposit is all that is permitted (and it can only be collected once the tenancy agreement has been entered into); and
• Landlords and agents cannot invite offers above the advertised rent, run competitive bidding rounds, or advertise at “offers from…”

One of the biggest concerns will be the prohibition against taking six or twelve months’ rent in advance from overseas students. This is common practice as a means of de-risking letting to overseas students so this will undoubtedly impact student landlords who market to overseas students. Ensuring that there are adequate guarantees in place will be of paramount concern to landlords.

CONCLUSION
 

The Renters’ Rights Act 2025 introduces significant changes for landlords in the student market. Whilst there are comprehensive exemptions for PBSA and some conditional exemptions for student HMOs, student lets in non-PBSA, non-HMO properties receive no such exemptions and landlords of these units will feel the full impact of the shift to periodic tenancies.

Understanding which category a property falls into and ensuring a suitable strategy is in place for setting your business up for the new rules is essential.

further information

For personalised advice and more information on how these issues might affect you directly, please reach out to our specialist team at Kingsley Napley LLP.

For more information on any of the issues mentioned in this blog, please contact Daniel Clyne or Libby Klinke.