The Renters' Rights Act 2025 And Student Tenancies: A Lesson In Legislative Change

The Renters' Rights Act 2025 (the Act) finally made the statute books on 27 October 2025. As we discussed in our article, Renters' Rights Act 2025 finally in sight, the reforms represent a fundamental shift in how the private rented sector (PRS) will function. The Secretary of State for Housing, Communities and Local Government, Steve Reed, described it as "the biggest leap forward in renters' rights in a generation".

While the Act affects all Living asset classes, student accommodation presents some of the most complex challenges once the reforms come into force.

What's so special about student accommodation?

The Act does not apply uniformly across the student housing market.

• Some students will have full statutory protection; some will have some of the protections; others will fall entirely outside the new regime.
• Some landlords will retain flexibility to let in line with the academic year; others will not.

The factors that determine the above are the type of property and the identity of the landlord.

Students in university owned halls of residence

Students in halls of residences typically occupy under licences or common law tenancies. These arrangements allow providers to regain possession at the end of each academic year.

These tenancies are outside the scope of the Act, so halls of residence will continue to operate as they do now.

Students in purpose-built student accommodation (PBSA)

Much debate has centred on how PBSA will be treated. Although the term "PBSA" does not appear in the Act, it refers to student accommodation operated under government-approved codes such as Unipol or ANUK.

New PBSA tenancies

The government has confirmed that PBSA tenancies granted after the provisions are in force will mirror halls of residence and remain outside the new regime. Providers will grant common law tenancies with fixed terms aligned to the academic year. They will also retain the ability to take multiple rent payments upfront, which will be welcome news for operators housing international students without UK guarantors where termly or yearly rental payment profiles are common.

However, the practical details depend on secondary legislation, which has yet to be published. This is an area to watch closely.

Existing PBSA tenancies

For existing PBSA tenancies, the position is more nuanced. Many are currently assured shorthold tenancies (ASTs) granted for fixed terms expiring at the end of the academic year. Under the new regime, these will convert into assured periodic tenancies without a fixed end date. However, as a transitional measure, MPs agreed that PBSA landlords can rely on a special eviction ground to regain possession provided they serve a statutory notice within one month of commencement of the relevant Act provisions, notifying students that they intend to rely on this possession ground. This detail awaits confirmation in the regulations.

Students in houses of multiple occupation (HMOs)

HMOs, usually shared by three or more students, have traditionally been let on ASTs.

New HMO tenancies

Under the Act, all new HMO student tenancies will become assured periodic tenancies within the scope of the new rules. However, Parliament created a specific possession ground for HMO landlords to recover possession at the end of the academic year.

To rely on this ground:

• the landlord must not grant the tenancy more than six months before occupation; and
• they must notify tenants at the start of the tenancy of their intention to rely on this provision.

This seeks to discourage students, particularly first year students, from having to secure accommodation prematurely, before forming friendship groups.

Existing HMO tenancies

Existing HMO tenancies will transition to periodic tenancies, but landlords will still be able to use the new possession ground provided they serve a statutory notice within 28 days of the relevant provisions taking effect giving the tenant advance warning of the landlord's intention.

Students in other private rentals

Other student lettings traditionally let by way of ASTs – typically small houses or flats occupied by one or two students under buy-to-let-landlords – will be fully subject to the new regime.

These landlords face the greatest risk of not regaining possession in line with the academic year because they will be reliant on standard possession grounds. Some may choose to exit the student market altogether in favour of longer-term tenants.

Tenants, conversely, may face disruption if landlords invoke new possession grounds to sell or reoccupy their properties mid-year.

Students occupying under licences

Some students occupy by way of licence which are contracts outside the scope of the existing AST regime. The Act makes no changes to these arrangements and true licences will not be subject to any of the reforms.

Landlords must be careful to ensure that these agreements are in fact licences, not tenancies. Courts will look at the substance of an agreement, not what it is called. If it grants an occupier exclusive possession of premises, there is a risk that it will in fact be a tenancy. This has always been an issue, but the risk will be even greater. Landlords who inadvertently grant tenancies, not licences, will be in breach of many of the Act's provisions and potentially face multiple fines and enforcement action.

What next?

The Act introduces a fragmented and often arbitrary landscape for student housing. It is essential that landlords review their current tenancy structures and identify which category their properties fall into.

Key next steps:

• Monitor the publication of secondary legislation, particularly regarding PBSA.
• Keep track of implementation dates for each provision.
• Review tenancy agreements and notice procedures now to ensure future compliance.

We will continue to track developments. For tailored advice, please contact Matt Walker or Tara Goodwin.

This is a summary of what the student accommodation landscape will look like for tenancies granted after all relevant provisions are in force:

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The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.