Renters’ Rights Act 2025: What Student Landlords Need to Know

Each September, landlords welcomed new cohorts of students; each summer, they cleared properties for refurbishment and prepared for the next intake. A cyclical market under a legal framework that accommodated fixed-term leases aligned with academic years.

But since the Renters' Rights Act 2025 received Royal Assent on 27 October 2025, this era has officially ended. Here is what student landlords need to know to survive the new landscape.

At a Glance

Commencement: 1 May 2026

• Abolition of fixed-term Assured Shorthold Tenancies (ASTs)
• All private tenancies convert to rolling Assured Periodic Tenancies (APTs)
• Tenants can leave with two months’ notice at any time
• Advance rent capped at one month unless exempt
• Ban on competitive rent bidding
• New possession ground (Ground 4A) for HMO student housing
• Section 21 “no-fault” evictions repealed

The End of the Fixed Term

From 1 May 2026, fixed-term Assured Shorthold Tenancies (ASTs) will cease to exist for private rental sector properties. Existing ones will be automatically converted into Assured Periodic Tenancies (APTs), which roll into month-to-month arrangements with no defined end date. With a conversion applied to all existing tenancies from commencement where landlords cannot carry forward old ASTs.

The Two-Month Notice Right

Students now possess the unilateral right to terminate their tenancies by providing two months' notice at any point during the year. For landlords accustomed to summer-to-summer transitions, this introduces profound timing and revenue uncertainties.

Under the new Act, the concept of a fixed term is being erased entirely; all new tenancies will be periodic, rolling tenancies from the very first day. This introduces a new layer of risk, where a student who drops out mid-year, changes universities, or decides to move back home can exit by providing written notice.

Advance-Rent Cap

One of the most commercially damaging changes concerns advance rent payments. Historically, student landlords have relied on receiving six or twelve months' rent upfront, typically collected when students receive grant monies in September.

The advance rent practice served two purposes: it secured cash flow predictability and de-risked letting to students with limited credit histories or guarantors.

But this model in its traditional form is now prohibited, and advance rent is now capped at one month, with monthly rent becoming the default.

A new rule that applies uniformly and includes international students, except where equivalent protections (such as robust guarantor agreements or rent insurance schemes) are in place.

The Bidding-War Ban

A lesser-publicised but also important change is that landlords can no longer engage in competitive bidding processes for properties, a 'ban on bidding wars'. The listed rent is now a ceiling price, and the ability to charge or accept offers above advertised rates is illegal.

Ground 4A

Lobbying groups, including Universities UK and the NRLA, successfully argued that a completely open-ended tenancy system would destroy the student market.

Recognising that student landlords required specific protections, Parliament created a new statutory ground for possession called 'Ground 4A' under the Act's new Schedule for possession grounds, under Schedule 2 of the Housing Act 1988.

This ground permits landlords to recover possession of student properties to 'fall in line with the academic year, being the period beginning with 1 June and ending with 30 September'.

Ground 4A functions as a limited no-fault-style ground, meaning it does not require tenant breach but mandates proof of intent to re-let to a new student and strict adherence to written-notice protocols.

Unlike the abolished Section 21 mechanism, Ground 4A success depends entirely on meeting specific procedural and substantive conditions.

Under the old system, a student tenancy would run from September through June, with the lease automatically expiring. Students left; landlords refurbished; new students arrived. Under the new regime, unless landlords take specific statutory action, tenants can remain indefinitely.

HMO-Only Limitation

Here lies the trap: the most critical detail is that Ground 4A currently applies only to Houses in Multiple Occupation (HMOs), as corporate blocks are treated differently.

Small student properties that are not classified as HMOs, such as studios, one-bedroom flats, or two-bedroom properties let to students in non-designated student housing blocks, receive no student-specific protection.

This creates a dangerous scenario where a landlord with a non-HMO student flat effectively grants the students an indefinite tenancy. If those students decide to stay for three years or remain in the property as graduates, the landlord cannot evict them simply to bring in new students at a higher market rate.

These properties convert to standard periodic tenancies with no mechanism to recover possession at the end of an academic year unless the landlord can rely on general grounds (rent arrears, antisocial behaviour, breach of contract).

Notice Deadlines

The notice requirements are complex and time-sensitive. For existing HMO tenancies in place on 1 May 2026, landlords must serve a written statement within 28 days of the Act's commencement, essentially by approximately 29 May 2026.

This notice must confirm the landlord's intention to recover possession for a new cohort of students. Failure to serve this notice within the prescribed window forfeits Ground 4A protection for that academic year.

For new tenancies granted after 1 May 2026, the lease itself must be signed no earlier than six months before the student occupies the property.

Abolition of Section 21 and the New Reliance on Section 8

The End of "No-Fault" Evictions

Section 21 of the Housing Act 1988 permitted landlords to recover possession without cause, provided proper notice was given. A predictable turnover that undergirded student housing economics. Section 21, from 1 May 2026, is completely abolished.

However, the Act provides a transitional window where landlords may still serve Section 21 notices prior to 1 May 2026, provided they issue possession proceedings within three months. After 31 July 2026, Section 21 notices become legally unenforceable.

Landlords can no longer recover possession simply because a fixed term has ended or because they wish the tenant to vacate.

The Available Section 8 Grounds

Instead, landlords must rely on the strengthened Section 8 grounds. For general student tenancies (particularly non-HMO properties), the available grounds are considerably narrower, and this means maintaining a paper trail of noise complaints and warning letters.

Rent arrears

Mandatory grounds exist for significant arrears (typically three months or thirteen weeks if rent is paid weekly or fortnightly). However, rent collection difficulties, already cited as a concern, now directly threaten possession rights.

Antisocial behaviour

Antisocial behaviour (ASB) as a ground remains actionable but requires evidence of disorder serious enough to meet legal thresholds. Typical student noise or messiness will not suffice, and demonstration that attempts have been made to resolve it is a necessity.

Breach of tenancy conditions

Serious breaches (such as unauthorised occupants or major damage) can support claims, but procedural complexity and court scrutiny have increased.

Rent Controls and Market Value

The RRA does not introduce hard rent caps, but it does introduce a mechanism that acts as a form of soft rent control. Landlords may increase rent once annually via Section 13 notice, but tenants can challenge increases at the First-tier Tribunal if the proposed rent substantially exceeds market rates for comparable properties.

Given the advance rent cap, the bidding war prohibition, and the annual increase limits, landlords must price accurately at lease commencement. Rent review clauses' written into contracts, such as those stipulating an automatic 5% annual increase, are likely to be banned or rendered unenforceable.

Property Standards

The RRA signals government intent to align the Private Rented Sector with the Decent Homes Standard, previously applicable only to social housing.

The Decent Homes rollout is planned for 2035–2037, with ongoing consultation around Awaab's Law extension. Properties must be free of serious hazards, be in a reasonable state of repair, and provide a reasonable degree of thermal comfort.

Many student HMOs are in older Victorian stock, and landlords should budget for upgrades to heating systems and insulation to meet these incoming standards.

Simultaneously, Awaab's Law, will set strict legal timeframes for dealing with reported damp and mould, potentially requiring investigations within 24 hours and repairs within seven days.

Practical Implications for Landlords Overview

Conclusion

Councils are equipped with enhanced inspection and sanction authority. Courts, whilst facing capacity pressures, remain available for breach proceedings. Landlords who ignore the new rules do so at increasing risk.

For those who adapt systematically, the student housing sector will continue to offer stable, diversified income streams. The model has evolved; the opportunity has not disappeared.