On 27 October 2025, the Renters' Rights Act 2025 received Royal Assent, making it an Act of Parliament. Shortly after, the government published its long-awaited roadmap for implementation, with the first key date for diaries being 1 May 2026 (the ‘Commencement Date’).
The Act brings in a transformative new private residential tenancy regime. It offers renters more security, provides for better quality and safer homes, and creates greater landlord transparency and increased accountability. The Act is complex and varies a number of existing laws and regulations, such as the Housing Act 1988 and the Tenant Fees Act 2019.
While there is much still to come by way of secondary legislation, regulation and consultation, the private rented sector (‘PRS’) has welcomed the increased certainty brought about via the roadmap, which gives landlords and agents some time to prepare.
For owners and operators of purpose-built student accommodation (PBSA), in particular, overall sentiment is that the changes bring good news. Read further below to find out why.
Which tenancies does the Act apply to?
Subject to some specific exclusions, for instance, local authority or certain types of student accommodation, the Act applies to all residential assured tenancies that satisfy the following criteria (whether granted before or after the Act):
- Granted to an individual tenant(s) who occupies as their only or principal home.
- The rent is between £250 (or £1,000 in Greater London) and £100,000 per year.
- The original term does not exceed 21 years.
From the Commencement Date, commonly used assured shorthold tenancies (‘ASTs’) will be abolished. All such tenancies will be periodic, rolling month-to-month tenancies; fixed terms and section 21 notices/evictions will be a thing of the past.
Which types of student accommodation are specifically excluded?
Schedule 1 to the Housing Act 1988 contains specific types of tenancies that cannot be assured tenancies.
Further regulations are needed, but broadly in effect, there are two types of student accommodation tenancies that are specifically excluded under the Act, via an amendment to expand the existing exemption in paragraph 8 of Schedule 1, as follows:
1. Tenancies granted by ‘specified educational institutions’ or specified bodies.
2. PBSA owners and operators that are members of a specified housing management code of practice. Further information is awaited, but it is expected to be the ANUK/ Unipol National Code for accommodation owned or managed by non-educational establishments, which many will already be signed up to.
If not ASTs, what kind of tenancies will these providers use instead?
Qualifying providers will be able to grant common law tenancies instead of ASTs. These are contractual tenancies that are not subject to the same statutory regime as assured tenancies.
This gives providers the benefit of, for instance, granting tenancies for fixed terms and the ability to terminate and regain possession without needing to rely on a specific statutory ground. These advantages are critical for managing the academic calendar cycles for student lettings.
So, a welcome exclusion for the student accommodation sector.
Does the PBSA exemption operate from the Act Commencement Date?
Yes and no.
Regardless of code registration for PBSA providers, ASTs currently in place will become assured periodic tenancies overnight on 1 May 2026.
The transitional provisions in the Act offer protection by allowing the use of Ground 4A (the so-called ‘student possession ground’) during this period. In order to take advantage providers must serve a written statement on all students before 1 June 2026.
Meanwhile, for future tenancies, likely to start with those for the 2026/27 academic year, PBSA providers are likely to enter into reservation agreements with students now, but hold off on granting their common law tenancies until after 1 May 2026, so that they fall outside of the Act.
There are other types of student accommodation tenancies in the market. Does that mean these tenancies are caught by the Act?
Yes, it does. Private Houses in Multiple Occupation (‘HMO’) student tenancies will be caught by the Act; these landlords will be able to rely on the aforementioned student possession ground to terminate tenancies and take back possession.
Properties not classified as HMOs fall within the Act, and those landlords do not benefit from the student possession ground or any other specific termination ground.
Was this differing treatment of student tenancies intentional? Will it work in practice or create scope for dispute?
The varying treatment of student tenancies was intentional. The government’s position during the Bill’s passage through Parliament is that not all students are made equal, and some require more security than others.
For instance, mature students or post-graduates may be studying for several years and are more likely to occupy a studio or two-bed apartment, possibly with their young family, and so those tenancies should not be excluded from the Act, or those landlords benefit from the student possession ground.
There has been much talk around the many ‘unintended consequences’ of the Act; as is the case with any new legislation, there is significant scope for disputes to arise.
For student landlords that do not benefit from an exemption or a possession ground, there is a risk of being faced with void periods if tenants terminate early or if tenancies become misaligned with the academic calendar.
More generally, landlords will need to amend their future tenancy agreements, register themselves with the PRS Database (due late 2026) and later with the PRS Landlord Ombudsman, comply with the new Decent Homes Standard (though not expected to come in before 2035) and grapple with other measures affecting standards and safety, such as a new Minimum Energy Efficient Standard for private residential (the target being EPC C across the board by 2030).
While these measures are positive for renters and the market, particularly for landlords with smaller portfolios, the Act will require significant and costly changes to existing business operations. This is likely to drive up rents and/or we may see some of these providers leaving the student market, and even the private rented market altogether.
That, of course, creates scope/ opportunity for owners and operators of PBSA to pick up demand.
What other protections do landlords of student accommodation have?
Landlords can still take into account income and request security deposits, holding deposits and guarantors. These protections are helpful to ensure landlords can assess the tenant’s ability to afford the rent.
However, the limitation on requesting rent in advance (restricted to one month under the Act), is expected to have a detrimental effect on the student sector in particular, for instance, international students without a credit history who often rely on this to secure the tenancy.
Landlords can also increase rent once per year via a statutory notice procedure, in line with the market.
However, tenants have the ability to challenge the increase in the First-tier Tribunal. The Tribunal can confirm or reduce the proposed rent, but cannot increase it. Rent increases will only take effect from the rent payment date following the Tribunal’s determination. The government could bring in regulations to enable back-dating (likely to be deployed if they feel that this safeguard is being abused by tenants).
That power in itself may provide a helpful deterrent to spurious rent challenges.
