Renters Rights Bill: student accommodation for higher and further education

The Renters’ Rights Bill (‘Bill’) was debated in the Commons on Monday 8 September 2025 and Housing minister Matthew Pennycook rejected almost all of the non-Government amendments to his Renters’ Rights Bill. Assuming the Bill is not returned with further amendments by the Lords, it will then be sent to the King for Royal Assent

It is possible therefore, but not certain, that the Bill will be finalised before the UK parliament’s next scheduled recess with the final day the Commons is sitting before the recess being Tuesday 16 September 2025.

It would seem prudent therefore to set out what we know about the Bill at this stage, how it will apply to different types of student accommodation and how it may impact the student lettings market once it becomes law.

What is the Renters’ Rights Bill?

The Bill will introduce a range of new requirements which will provide more protection to tenants in private rented homes. It goes further than the previous Government's Renter’s Reform Bill and will:

·       Ban no-fault evictions;

·       Prevent landlords from blocking tenants on benefits or with children

·       Block bidding wars stopping landlords and letting agents charging above the listed rental price.

·       Introducing fines for landlords of up to £7,000 if homes do not meet a “decent standard”.

·       Stop landlords from asking for rent in advance for any new tenancies after the Bill becomes law.

·       Allowing landlords to only raise rents once a year, and any increase can only be to “market rate”.

·       Rather than typical 12 month contracts, all new tenancies will be automatically converted to a periodic tenancy.

·       Tenants will still be able to end a tenancy with two months' notice but landlords will now require a legitimate reason for eviction.

What does this mean for student lettings?

Currently, lettings by specified educational institutions to full-time students are exempt from the assured tenancy regime of the Housing Act 1988 (‘1988 Act’). If the landlord is not a specified educational institution, a letting to a student will usually be an assured shorthold tenancy (‘AST’) under the 1988 Act.

Landlords of ASTs can seek possession by relying on one or more of the mandatory or discretionary grounds set out in the 1988 Act.

The only specific ground specifically relating to student accommodation is that if, in the 12 months before the current letting, the property was let to students by a specified educational institution. This is mainly intended for situations where a non-student tenant is granted a short-term letting to fill a void period.

More commonly, landlords of ASTs regain possession by using the process in section 21 of the 1988 Act, which allows them to end the tenancy after the end of the fixed term by giving at least two months' notice. This does not require the tenant to be at fault nor for the landlord to prove grounds for possession and so is often referred to as a "no-fault eviction". The ability to recover possession in this way can be crucial for student landlords, who need certainty that they can relet the property for the next academic year.

The key proposals of the Bill which will directly impact students lettings therefore are the abolition of ASTs and fixed-term assured tenancies and the end of section 21 no-fault evictions.

Exemptions to the Bill

There are however, some exemptions from the Bill which will apply to the student rental sector.

University Lettings and Purpose-Built Student Accommodation

The existing exemption from the assured tenancy regime in the 1988 Act for student lettings by specified educational institutions such as universities will remain in place. Purpose-Built Student Accommodation will also be exempt from the Bill, provided providers are registered with government-approved codes. Instead, student accommodation will be governed by the Protection from Eviction Act 1977 instead.

House in Multiple Occupation

There is an exemption in the legislation that allows landlords to regain possession of properties let to students in line with the academic calendar,  but only where the property is a house with three or more bedrooms.

As a result of these changes, a wider range of student lettings will, going forward, fall outside the restrictions on regaining possession found in the 1988 Act and so be by extension, outside the key changes being introduced by the Bill.

What about existing student tenancies?

However, the exemptions will not help landlords who have existing student ASTs, which will automatically convert to periodic assured tenancies when the new provisions take effect and for which the section 21 no-fault eviction process will no longer be available.

To regain possession instead, landlords will need to rely on one of the grounds for possession set out in the 1988 Act as amended by the Bill. However, it is important to note that a new Ground 4A will be introduced to specifically deal with student accommodation.

Ground 4A will allow landlords to regain possession of properties let to full-time students, where the property is needed for a new group of students in line with the academic year. As currently proposed, this ground will only be available where the following conditions are met:

• The tenants are all full-time students at the time the tenancy is granted (or at that time the tenancy is granted the landlord reasonably believes they will become full-time students during it).

• Before the tenancy is entered into, the landlord has given the tenants a written statement of its wish to be able to recover possession on this ground.

• The tenancy is not granted more than six months in advance of the tenant taking possession.

• The date specified in the notice falls between 1 June and 30 September.

• The landlord intends to relet to full-time students.

How will the Bill impact the student letting market?

Many student landlords have raised concerns about the Bill’s impact on the student housing market, particularly given the short letting window between academic cycles and the fact that fixed-term contracts are currently standard practice reflecting students’ tendency to vacate during summer breaks.

Whilst the House of Lords voted in favour of an amendment to the Bill which would allow the HMO exemption to also cover one and two-bedroom student properties, this was pushed back in the Commons’ latest version of the Bill.

The National Residential Landlords’ Association (‘NRLA’) has warned that this will serve to exclude many landlords with smaller student lets and that “Around a third of housing typically lived in by those in their second year of study…… and students will not have certainty that this type of housing will be available from one academic year to the next.”

The NRLA further commented that “If landlords are not confident they can regain possession in time for the next academic year, many will stop letting to students altogether. The result will be fewer homes, higher competition, increased rents, and less choice for students.”

Additionally, estate agency trade body Propertymark has warned that more landlords could exit the sector due to the extra regulations, especially given that tenants can more easily end a contract with just two months’ notice,  leading to fewer properties for tenants to rent.

Sophie Lang, ARLA Propertymark Executive for Cornwall with 15 years’ experience in the student market says that within her own HMO lettings book, 11 per cent of properties are currently listed for sale as landlords begin to exit the market in response to the proposed reforms.

Furthermore there have been concerns that by banning landlords from asking for rent in advance, the Bill may serve to  inadvertently discriminate against international students, many of whom cannot produce a guarantor but instead rely on grants or scholarships to secure accommodation and pay rent upfront.

It will be interesting to see what provisions remain in the Bill when it eventually becomes law and if you need any guidance or assistance with the provisions of the Bill then Forbes can assist further.