Renters’ Rights Act raises uncertainty for student accommodation

The introduction of the Renters’ Rights Act is set to bring significant changes to the student accommodation sector, creating new challenges for landlords and uncertainty for students seeking housing. Industry experts highlight the need for careful planning and adaptation to the new legal framework, which abolishes fixed-term tenancies and introduces a two-month notice period for ending tenancies.

Changes to Tenancy Agreements Under the Renters’ Rights Act

The Renters’ Rights Act removes fixed-term tenancies, allowing tenants to end their tenancy with two months’ notice. This shift means that tenancies which previously ended automatically at the conclusion of an academic year, typically in June, will now depend on the new notice requirements and possession grounds.

Owen Dixon, founder of Best Student Halls, emphasises the impact this will have on both students and landlords. He explains, “Students want certainty that they will have accommodation secured for the full academic year, and providers need confidence they can legally regain possession in time to prepare properties for incoming cohorts.”

He further notes that while the framework aims to preserve academic-cycle turnover, any delays in the possession process could place pressure on the turnaround times ahead of the September intake, potentially disrupting the smooth transition between student cohorts.

Implications for Student Landlords

With the abolition of Section 21 notices, landlords must now rely on defined statutory grounds to regain possession of their properties. Mr Dixon points out that this creates a fairer and more transparent system but also introduces greater administrative complexity, especially during peak turnover periods.

He advises that student landlords will need to adopt more careful planning to navigate these changes effectively. This includes managing timing more actively and understanding the legal grounds required to regain possession, which may affect how landlords structure their tenancy agreements and manage their portfolios.

Potential Shift Towards Purpose-Built Student Accommodation

Mr Dixon predicts that purpose-built student accommodation (PBSA) providers will gain a larger market share as they can continue to offer fixed-term tenancies, unlike private landlords. This ability allows PBSA operators to maintain tenancy agreements aligned with the academic year, providing greater certainty for both students and landlords.

He explains, “The student accommodation market is expected to adapt, with purpose-built student accommodation and some larger operators likely to structure their offer around the academic year, supported by the possession grounds available for student lets.”

This development may lead to a clearer distinction between providers offering structured academic-year tenancies and those managing more flexible, periodic arrangements, which will require more proactive management of tenancy timing.

What this means for landlords

Landlords in the student accommodation sector must prepare for increased administrative demands and the need for strategic planning. The removal of fixed-term tenancies and reliance on possession grounds means landlords will have less automatic control over tenancy end dates, requiring them to be more vigilant in issuing notices and managing turnover periods.

Additionally, landlords may see a shift in tenant preferences towards purpose-built student accommodation, which offers greater certainty. This could influence investment decisions and portfolio management strategies within the student housing market.

Source: Based on reporting from Property118

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