Renters’ Rights and Student Accommodation: What is the latest as the Act obtains Royal Assent?
As the Renters’ Rights Bill has proceeded with its journey through Parliament, changes have been made by the Government in relation to the treatment of student accommodation.
Firstly, the Government has inserted a new provision whereby a tenancy will not be an assured tenancy (and will therefore fall outside the regime) if it is a tenancy let to a full-time student at a specified educational institution where that tenancy is granted by a specified educational institution or by a specified body of persons. Alternatively, tenancies will not be assured where someone acting on behalf of the landlord is a member of a specified housing management code of practice. It is not yet entirely clear how these provisions will operate as the Act outlines this framework but there is much detail which has not been finalised and will be contained in secondary legislation. For example, what criteria will need to be met for an organisation to fall within the category of a specified body of persons? These provisions, however, are designed to give effect the Government’s original aim to exempt some Purpose-Built Student Accommodation (“PBSA”) from the Act.
Once the Act comes into force, where a tenancy let to students meets this exemption, it is likely to be a common law tenancy which means that landlords can continue to grant a fixed term tenancy with a break clause. It is important to note that this exemption will come into force two months after the Act received Royal Assent (i.e. on 27 December 2025) whereas the majority of the remainder of the Act will not come into force until the commencement date of the Act. The Government has yet to formally announce its plans for the commencement date.
Where a tenancy to students does not fall within the above exemption, under the Act, it will convert to or be an assured periodic monthly tenancy. During the passage of the Act, the Government introduced a new ground for possession: Ground 4A. This enables landlords to seek possession of a property let to full-time students where possession is required to let it to another group of full-time students.
Amendments to the Bill removed a reference to HMOs in Ground 4A. However, on 14 October 2025, during the ping pong phase, the House of Lords accepted that the words HMO were inserted back into Ground 4A. This means that landlords can only rely on ground 4A in relation to HMO properties which are let wholly to full-time students. There is also a potential trap for unwary landlords because to rely on Ground 4A, once the Act is in force, the landlord must serve written notice on tenant within 28 days of the date the tenancy converts to an assured periodic tenancy that the landlord wishes to be able to recover possession on the basis that the tenant is in full-time student and the landlord intends to let the premises in future to other full-time students.
In addition, 4 months’ notice will be required to rely on Ground 4A. However, unlike a traditional fixed term letting to students where students leave at the end of the academic year which often coincides with the expiry of the fixed term, tenants will be able to give two months’ notice at any time under an assured periodic tenancy to bring it to an end. This may mean that a landlord of student accommodation is left with a void period with no demand for the accommodation until the beginning of the next academic year.
The Act received Royal Assent on 27 October 2025. Stakeholders in the Living Sector will await further details of the commencement date from the Government to provide certainty so they can prepare for implementation.
We are tracking developments on our Essential Residential Hub and our timeline: Evolution of the private rented sector. This is a general guide only and does not constitute advice on any specific circumstances. Please seek advice on your specific circumstances.
Please do not hesitate to contact Lauren Fraser, Laura Bushaway or your usual Charles Russell Speechlys contact if you have any queries.
Quote: The shift to periodic contracts could disrupt the traditional student rental cycle: if a student leaves mid-year, it may be difficult to re-let the property until the next academic year. Additionally, landlords could become liable for council tax if a property remains vacant for three to four months. The bill threatens to fundamentally disrupt the student HMO market, where the changes could have a significant knock-on effect on student letting behaviour, cashflow and student landlords deciding to leave the market.
