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

The forthcoming Renters’ Rights Act 2025 is prompting concerns among landlords of student Houses in Multiple Occupation (HMOs), who argue that the legislation’s provisions do not align with the unique nature of student tenancies. A petition has been launched seeking to exempt student HMOs from the Act, citing the distinct rental model and tenancy patterns compared to professional and private rentals.

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

The Renters’ Rights Act 2025 introduces changes that affect how notices to quit are handled in HMOs. Under the new rules, if one tenant in a shared house gives notice to leave, the entire household is considered to have given notice. This has caused significant distress among tenants and landlords alike, particularly in student properties where tenancies are closely tied to the academic calendar.

For example, if a single student gives notice mid-year, it effectively forces the entire household to vacate, even if the other occupants wish to remain. Landlords have reported cases where several tenants experience anxiety due to one occupant’s decision to leave. Furthermore, if the whole house gives notice in April, landlords face a gap in rental income until the new academic year begins, alongside the burden of council tax costs during the void period.

Impact on Rental Prices and Availability

The financial uncertainty created by these regulations is likely to lead landlords to increase rents to offset potential losses. Alternatively, some landlords may withdraw from the private student housing market altogether. This could reduce the availability of more affordable private accommodation options for students, who often find private HMOs cheaper than university-managed housing.

It is important to note that university accommodation is not subject to the same rental reform rules, highlighting a disparity in how different types of student housing are regulated.

Petition to Exempt Student HMOs

In response to these issues, Julie Ringrose has initiated an online petition calling 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 HMOs.

As stated in the petition: “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.”

The petition further explains that while professional HMOs can readily re-let rooms when tenants leave, student landlords face difficulties finding replacement tenants mid-year. Students typically plan their accommodation in advance and often rent with a fixed group of friends for the entire academic year. This makes mid-term re-letting unlikely, rendering the landlord’s position financially unstable and unpredictable.

“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,” the petition states.

What this means for landlords

Landlords of student HMOs should be aware of the potential impact of the Renters’ Rights Act 2025 on their business model. The requirement that notice from one tenant constitutes notice from all could lead to increased void periods and financial risk. This may necessitate a review of rent levels or reconsideration of investment in student properties.

Engagement with the ongoing petition and dialogue with policymakers could be crucial for landlords seeking to protect their interests and maintain the viability of private student housing. Understanding the distinctions between student and professional HMOs will be important in advocating for fair treatment under the new legislation.

Source: Based on reporting from Property118

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