Student

Student Lettings Have Entered a Two-Tier Market — and Small Landlords Carry the Risk

The Renters’ Rights Act is exposing practical problems in England’s academic-year rental model

England’s student rental market is entering its first full academic-year cycle since the main Renters’ Rights Act changes took effect on 1 May 2026. Reports published this weekend suggest that landlords, agents and students are already encountering practical problems as a system built around predictable fixed terms adjusts to rolling tenancies.

The reforms give students greater security and flexibility. However, student housing does not operate like an ordinary year-round market: homes are advertised months ahead, groups form around the university calendar and landlords need time for inspections, repairs and reletting. Removing fixed terms has not removed those realities.

Fixed terms have gone—but academic years have not

Most private student tenancies covered by the assured tenancy system are now periodic rather than fixed term. They continue until the tenant or landlord ends them through the correct process, and tenants can normally leave by giving at least two months’ written notice.

That flexibility can help a student whose circumstances change. For landlords, however, it removes the automatic end date that aligned one group’s departure with the arrival of the next. In a joint tenancy, notice from one tenant can end the tenancy for the whole group, creating uncertainty for everyone.

A landlord may therefore market a property for the next academic year without knowing with complete certainty when the current occupiers will leave. Late changes can disrupt cleaning, safety checks, repairs and move-in dates. If landlords respond by leaving longer gaps between tenancies, the resulting void costs will ultimately influence the viability and pricing of student homes.

Ground 4A is not a simple replacement for a fixed term

The Act introduced possession Ground 4A to help some student landlords recover a property for another student letting. It can apply to full-time students renting jointly in a house in multiple occupation, provided the required written warning was given and the other statutory conditions are met.

Official information says landlords using this ground must give four months’ notice, with possession required between 1 June and 30 September. If tenants do not leave, possession is not automatic: the landlord must apply to court. The ground also does not cover every student property or every household arrangement.

Ground 4A offers a route to regain possession, but it is more conditional than a fixed end date. A missed notice, a tenant who fails the student test or a court delay could leave the next group without accommodation and the landlord unable to honour the planned start date.

The one-month advance-rent limit creates another tension

The new rules prevent landlords and agents from accepting rent before the tenancy agreement is signed. During the pre-tenancy period, they can usually take no more than one month’s rent where rent is paid monthly.

This protects students from being asked for large sums before moving in. Yet paying several months in advance was also a way for international students and others without a UK-based guarantor to demonstrate financial security. Removing that option does not remove the landlord’s concern about payment risk.

The likely response is greater reliance on guarantor services, stricter referencing or a narrower choice of applicants. That could unintentionally disadvantage the same students the rule is designed to protect unless universities, accommodation providers and policymakers develop workable alternatives.

Not every student provider faces the same rules

Purpose-built student accommodation can be treated differently where it falls within an approved housing-management code. Unite Group stated in its July trading update that all its new purpose-built student tenancies for 2026–27 would be exempt from the new regulations, while transitional rules had allowed some 2025–26 residents to leave early.

The company still expected occupancy of 94% to 96% for 2026–27 and had 86% of its beds reserved by 8 July. That is one large operator’s position, not evidence for the entire student market. It nevertheless illustrates the different resources and regulatory treatment available to major purpose-built providers compared with individual HMO landlords.

The long-term outcome is not yet confirmed

The Act has been operating for only a little over three months, so it is too early to conclude that student rents will rise or that landlords will leave in large numbers. Early disruption does not prove permanent market damage, and students may benefit from being able to escape unsuitable accommodation without remaining liable for an entire fixed term.

However, the operational risks are real. The Government should assess the first full academic-year cycle carefully, including whether Ground 4A delivers possession in time, whether students without guarantors are being excluded and whether the different treatment of HMOs and qualifying purpose-built accommodation is distorting competition.

Student tenants need secure, decent homes, but they also need sufficient choice. A reform that protects flexibility while making traditional student letting too unpredictable could strengthen large corporate providers at the expense of smaller landlords. If those landlords withdraw, students may ultimately face fewer homes, less competition and higher costs.

NetRent does not provide legal advice. This article represents our understanding of rental property law and is provided for general information only. Landlords should obtain independent legal or professional advice where appropriate.

Telephone: 01352 721300
Email: support@netrent.co.uk

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