Exempt Student HMO’s from Renters’ Rights Act 2025?

The introduction of the Renters’ Rights Act 2025 is causing significant concern among landlords of student Houses in Multiple Occupation (HMOs). The legislation’s impact on student tenancies, which typically align with the academic calendar, has prompted calls for these properties to be exempt from the new rules.

Challenges Posed by the Renters’ Rights Act 2025 for Student HMOs

Under the new Act, if one tenant in a shared property gives notice to leave, the entire household is considered to have given notice. This has led to distressing situations where tenants experience anxiety simply because one housemate has decided to move out. The consequence is that landlords must wait until the start of the next academic year to re-let the property, resulting in a loss of rental income and an ongoing liability for council tax during the vacancy period.

This situation is particularly problematic for student HMOs, where tenants often plan their accommodation well in advance and tend to rent as a group for the full academic year. Unlike professional tenants, student tenants are less likely to be replaced mid-year, making the landlord’s income unpredictable and financially unstable.

Potential Consequences for the Student Housing Market

The financial uncertainty created by the Act may force landlords to increase rents to compensate for the risk of mid-year vacancies and council tax costs. Alternatively, some landlords might withdraw from the private student housing market altogether. This could reduce the availability of affordable student accommodation, as private HMOs generally offer lower rents compared to university-managed halls.

It is important to note that university accommodation is not subject to the same rental reform rules, which may further disadvantage private landlords and tenants in the student housing sector.

Calls for Exemption of Student HMOs

In response to these challenges, Julie Ringrose has launched an online petition advocating for student HMOs to be exempt from the Renters’ Rights Act 2025. The petition argues that student HMOs operate under a fundamentally different business and rental model compared to professional or private rentals.

Ringrose states: “We believe Student HMO’s should be exempt from the Renter’s Rights Act 2025 as these properties are run on a totally different business/rental model compared to professional and private rentals.” She highlights that while professional HMOs can easily re-let rooms when tenants leave, student HMOs face significant difficulties finding replacement tenants mid-year due to the nature of student tenancy arrangements.

She adds, “We think the changes brought in by the Act will make life for student landlords like myself extremely unpredictable and financially unstable and in turn, leaves student accommodation in an extremely vulnerable position.”

What this means for landlords

For landlords of student HMOs, the Renters’ Rights Act 2025 introduces a new layer of risk and uncertainty. The requirement that the entire household is deemed to have given notice when one tenant leaves disrupts the traditional academic-year tenancy model. This may lead to increased financial exposure through lost rent and council tax liabilities during void periods.

Landlords may need to reconsider their business models, potentially raising rents or exiting the student housing market. This could reduce the supply of affordable student accommodation, ultimately impacting tenants who rely on private HMOs as a cost-effective alternative to university halls.

Engagement with ongoing consultations and support for petitions like the one initiated by Julie Ringrose could be crucial for landlords seeking to influence future amendments or exemptions in the legislation.

Source: Based on reporting from Property118

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