The legal landscape for student accommodation is undergoing its most significant transformation in decades. With the Renters’ Rights Act 2025 (the Act) now on the statute books, universities and colleges must understand how these changes affect their lettings and how they differ from the private rented sector.
Why most university student lettings are not assured shorthold tenancies
Historically, lettings by higher education institutions to their own students have been exempt from the assured tenancy regime under Schedule 1, Housing Act 1988. This exemption applies where the landlord is a “specified educational institution” and the tenant is pursuing a course of study there. As a result, these arrangements are typically licences or common law tenancies, not assured shorthold tenancies (ASTs).
The practical effect? Universities have never needed to rely on Section 21 notices for “no-fault” evictions. Instead, possession is regained at the end of the academic year under the terms of the licence or fixed-term agreement. This flexibility is essential for managing accommodation cycles and ensuring rooms are available for incoming cohorts.
The abolition of ASTs under the Renters’ Rights Act 2025
The Act abolishes ASTs entirely. All new tenancies in England will now be assured periodic tenancies, with no fixed end date. Tenants can leave on two months’ notice given at any time, while landlords may only recover possession on statutory grounds. Crucially, Section 21 “no-fault” evictions are gone, meaning landlords cannot simply serve notice at the end of a term.
For the private rented sector, this represents a seismic shift. For student landlords who previously relied on fixed terms aligned with the academic year, the risk of mid-year voids is real.
Exemptions for higher education institutions and PBSA providers
The good news for universities and qualifying Purpose-Built Student Accommodation (PBSA) operators is that the Act preserves exemptions. Tenancies granted by specified educational institutions remain outside the assured tenancy regime. Similarly, PBSA providers registered under government-approved codes (such as ANUK/Unipol) can continue to offer common law tenancies with fixed terms, aligned to the academic calendar. In addition, PBSA operators can utilise the amended Ground 4 to obtain possession on the provision of two weeks’ notice where the accommodation is let to non-students, for example, during academic holidays.
These exemptions allow institutions to maintain operational certainty and avoid the complexities of the new regime. However, details will depend on secondary legislation, so providers should monitor developments closely.
Private landlords letting to students: a different story
Private landlords renting to students, whether in HMOs or smaller houses, are fully within the scope of the Act. Their ASTs will convert to periodic assured tenancies, and they will lose the ability to use Section 21. Instead, they must rely on statutory grounds for possession.
A new Ground 4A has been introduced to assist student landlords: it allows recovery of possession from HMOs let to full-time students, provided certain conditions are met. However, this ground does not apply to one- or two-bedroom properties, which make up a significant portion of the student market. This limitation may lead some landlords to exit the sector, reducing supply and increasing pressure on university accommodation. In addition, this new possession ground requires a minimum of four months’ notice to be given, and that notice must expire between 1 June and 30 September, which makes timing crucial and potentially problematic.
Private landlords also face additional restrictions:
- ban on rent in advance beyond one month
- mandatory registration on a national landlord database and ombudsman scheme
- compliance with the Decent Homes Standard and new safety obligations under Awaab’s Law.
When?
The Renters Rights Act 2025 received Royal Assent on 27 October 2025. However, the finer details as to when the various provisions of the Act will be enforced are yet to be announced. It is thought that Spring 2026 may be the key date for the enactment of the majority of the provisions, but confirmation is awaited from the Government.
Checklist for bursars and property managers
To stay compliant and operationally efficient under the new regime, consider the following.
Confirm institutional exemption
Verify your institution is listed as a “specified educational institution” under the Housing Act and meets any new requirements under the Renters’ Rights Act.
Audit PBSA partnerships
Check that third-party providers are registered under approved codes and maintain exemption eligibility under the new legislation.
Monitor private sector impact
Track changes in local student housing supply and consider contingency plans for increased demand on university-owned accommodation.
Prepare communication for students
Develop clear guidance explaining why university accommodation operates differently from private rentals under the new law.
Stay alert for secondary legislation
Assign responsibility for monitoring updates and implementing changes promptly.
Ensure compliance with related legislation
Review existing legislation, such as the Tenant Fees Act 2019 to ensure on-going compliance.
Key Contacts
The content of this article is for general information only. It is not, and should not be taken as, legal advice. If you require any further information in relation to this article please contact the author in the first instance. Law covered as at November 2025.