Impacts of the Renters’ Rights Act on Owners and Operators of Student Accommodation

The Renters’ Rights Act 2025 (‘RRA’) has fundamentally changed the UK private rented sector (‘PRS’) landscape, but certain types of student accommodation will be protected by necessary and important exemptions. This article examines the key provisions affecting student accommodation tenancies under the RRA and looks at:

1. the implementation timeline of the RRA;
2. the key impact of the RRA on owners and operators of student accommodation (‘Operators’);
3. grounds for possession in the RRA which benefit certain Operators and alternatives that other Operators might want to consider;
4. consequences of noncompliance and the continued need for court possession orders; and
5. next steps for Operators to prepare for implementation of the first phase of the RRA.

Implementation Timeline

The RRA received Royal Assent on 27 October 2025, but its substantive provisions are not yet in force. In November 2025, the UK government set out a roadmap for the implementation of the RRA in three phases.

The first phase will bring in the new tenancy regime envisaged by the RRA, described further below. This phase will come into force on 1 May 2026. Matthew Pennycook, the Minister of State for Housing and Planning, says this timing provides ‘significant time for landlords and letting agents to prepare effectively’.

Whilst the date of implementation of the first phase is now known, the government acknowledges in its roadmap that additional regulations are required to ensure such implementation is effective. In particular, it is expected that more-substantive regulations will be issued to exempt private purpose-built student accommodation (‘PBSA’) from the new tenancy regime.

For new tenancies created on or after 1 May 2026, the government will publish a draft tenancy agreement template in January 2026 so that Operators can begin preparing for the transition. For tenancies created before 1 May 2026, tenants must be provided with an ‘information sheet’ on or before 31 May 2026. This sheet will explain the key changes made by the RRA and is expected to be published in March 2026.

In later phases, the government intends to:

• introduce a database of PRS properties to combine key information for landlords, tenants, and local authorities;
• establish a legal ombudsman to settle disputes between landlords and tenants to avoid lengthy and costly court proceedings; and
• raise standards in the PRS through (i) the introduction of a new ‘Decent Homes Standard’ and (ii) the extension to the PRS of the Hazards in Social Housing (Prescribed Requirements) (England) Regulations 2025 (known as Awaab’s Law). This extension will mean that hazardous substances such as mould and damp must be addressed by landlords.

The timing for these later phases is not yet known but is expected to be determined following consultation.

What are the key impacts of the RRA for Operators of PBSA?

The RRA provides that all existing assured tenancies and assured shorthold tenancies (‘ASTs’) will automatically become assured periodic tenancies (‘APTs’) on 1 May 2026. Periodic tenancies are rolling tenancies that continue indefinitely (on a monthly basis or other specified period), rather than having a certain end date like traditional fixed-term tenancies.

Under the RRA, the converted ASTs and the vast majority of new tenancies will be terminable by tenants on two months’ notice. Whilst this gives tenants a lot of flexibility, allowing them to choose to remain in occupation for as long as required or end their tenancy quickly, it creates significant operational and financial challenges for Operators.

Operators rely on academic year cycles and need certainty over room availability for incoming students. Effectively coordinating the vacating of rooms with university term dates is key. These critical operational functions become extremely difficult to manage when tenancies can be terminated by students on just two months’ notice.

If students vacate their premises during an academic year, their accommodation is likely to be difficult to fill. Conversely, if a student refuses to leave at the end of the academic year, this could create availability issues for incoming students. Operators would face difficulties in effectively planning their occupancy strategies where existing tenancies are vulnerable to termination on two months’ notice.

The conversion to APTs will also create significant challenges in pricing and structuring remuneration arrangements for Operators. The risk of direct income loss resulting from mid-academic year tenant departures would render market-standard incentive-based fee structures unattractive for Operators who do not hold ownership interests. The alternative, fixed-fee arrangements would likely prove unattractive to owners who might see it as too risky. A further financial consideration arises where students pay annual fees in advance. If such students subsequently terminate their tenancies prior to year-end, Operators would need to determine whether partial refunds are required, thereby restricting the deployment of such funds as working capital or for investment purposes.

A further consequence of unpredictable income streams is the difficulty in accurately valuing student accommodation for investment purposes. Knight Frank’s 2025/26 UK Student Accommodation Outlook reports that ‘July to September 2025 marked the largest third quarter on record for PBSA investment in the UK, with £1.83 billion transacted’. The inability to price assets accurately risks undermining the momentum of this evolving market.

New Possession Grounds in the RRA

To alleviate industry concerns, new grounds for possession have been introduced under the RRA for certain Operators. Following implementation, Operators that meet certain conditions will be able to either grant tenancies outside of the scope of the RRA or take back student accommodation at the end of a term to relet it to students.

Possession Ground 4A

The RRA introduces a new statutory possession Ground 4A which applies exclusively to houses in multiple occupation (‘HMOs’). HMOs are properties occupied by a minimum of three tenants forming a single household who share toilet, bathroom or kitchen facilities. From 1 May 2026, this ground will enable Operators to recover possession of properties let to full-time students for the purpose of reletting them to incoming students.

The RRA provides specific guidance as to what constitutes a full-time student through a test (the ‘Student Test’) which requires that, at the relevant time:

• either (i) the tenant is, or was, a full-time student or (ii) the Operator reasonably believes, or believed, that the tenant would become a full-time student during the tenancy; and
• the tenant receives education by way of a full-time course provided by specified educational institutions.

Note that, where the ‘tenant’ under a tenancy agreement comprises more than one person, all persons must meet the Student Test for Ground 4A to be used.

If the Student Test has been satisfied, Operators of HMOs wanting to rely on Ground 4A must serve four months’ notice on tenants to use the ground. Possession of HMOs can only take place during the period from 1 June to 30 September in each academic year, so Operators should serve notice in good time.

Another key consideration for Operators is the timing of tenancy agreements for Ground 4A to be utilised. If a tenancy agreement was entered into more than six months prior to the commencement date of the term, this ground cannot be used. In practice, students frequently rent accommodation many months before the academic year commences. Operators will therefore need to plan ahead to ensure they only enter into tenancy agreements with students within the six month window.

Modified Possession Ground 4A for Qualifying Operators

For existing ASTs relating to the 2025–26 or 2026–27 academic cycles which will convert to APTs on 1 May 2026, the House of Lords has acknowledged that transitional arrangements are necessary to protect against the issues described above. Schedule 6 of the RRA introduces these transitional provisions through modifying the new statutory Ground 4A described above. However, the key point to note is that these provisions only apply to PBSA and to certain qualifying entities.

To be a ‘Qualifying Operator’ (i.e., an entity that can rely on the transitional provisions in the RRA), the entity must be (A) (i) a landlord, (ii) a person appointed by the landlord to act on their behalf in respect of the tenancy, or (iii) a person appointed to discharge management functions (defined as the provision of services or the repair, maintenance, improvement, or insurance of the building) and (B) a member of an approved housing management code of practice.

The Secretary of State can approve management codes of practice under section 233 of the Housing Act 2004. Currently, the approved codes of practice are:

• ANUK / Unipol Code of Standards for Larger Residential Developments for student accommodation managed and controlled by noneducational establishments;
• ANUK / Unipol Code of Standards for Larger Residential Developments for student accommodation managed and controlled by educational establishments; and
• UUK / GuildHE Accommodation Code of Practice for Student Housing.

For Qualifying Operators, modified Ground 4A provides a lifeline, enabling recovery of premises at the end of a tenancy. The modified ground is much wider than Ground 4A and is not just restricted to HMOs but, as mentioned above, only applies to PBSA.

To utilise this ground, Qualifying Operators must serve notice on tenants by 1 June 2026. The notice must inform tenants that the Qualifying Operator intends to seek possession on this ground and that the tenant met the Student Test when their tenancy was entered into or when such notice was issued. The notice must also confirm that the landlord intends to let the premises on the next occasion to a tenant who meets the Student Test.

Given the very short window to issue the notice, it is incredibly important for Qualifying Operators with existing ASTs to be aware of the key date for compliance with the provisions of modified Ground 4A.

In respect of tenancies granted after 1 May 2026, Qualifying Operators will be able to grant fixed-term, common law tenancies and will be exempt from the APT process. Further legislation will be issued by the Government to provide further detail on this exemption.

Possession Ground 4

It is worth noting that Ground 4 of the RRA allows possession of student accommodation by specified educational establishments such as universities and colleges. To use this ground, a property must have been let to students in the 12 months before the start of the tenancy. Two weeks’ notice must be provided to the tenant to vacate the premises.

Alternatives to granting APTs or tenancies post-implementation of the RRA

Operators who do not meet the criteria of a Qualifying Operator or who operate non-PBSA HMOs may wish to consider alternatives to granting tenancies to avoid being captured by the provisions of the RRA.

Licences to occupy fall outside the scope of the new RRA regime and so are not subject to the new APT tenancy regime. The key benefits of licences are that they are for shorter-term occupation, are personal arrangements, and can specify broad termination rights for an Operator. These characteristics make licences well suited to student accommodation.

Operators should, however, approach licences to occupy cautiously. If a student has exclusive possession and can exclude an Operator and any third party from their property, the courts will construe the licence to occupy as a tenancy. Such arrangements will be captured within the provisions of the RRA.

Court Orders and Financial Consequences

An Operator or educational establishment might find themselves with a tenant who has not vacated their premises following the expiry of the notice periods. Where this occurs, a court order will still be required to recover possession of the property because tenants cannot be forcibly removed. It is also important to note that where licences to occupy are used and the tenant does not vacate at the end of the term, a court order is also required before the premises can be taken back.

If Operators do not comply with the provisions of the RRA, they can face serious financial penalties. For breaches such as claiming to let the property on a fixed-term basis, penalties can be up to £7,000. For more serious offences, such as knowingly using a ground for possession despite knowing a court would not grant a possession order, penalties can be up to £40,000.

Next Steps

While the RRA represents a significant shift in the PRS landscape, Operators still have time to adjust and adapt to the incoming changes on 1 May 2026.

In respect of PBSA properties, Operators who are not currently members of approved codes should review the criteria for joining and submit applications urgently to benefit from much-needed RRA exemptions. For Qualifying Operators with existing ASTs, pre-preparing draft notices to issue on 1 May 2026 will ensure the stringent transitional notice periods are complied with. Success will depend on maintaining membership in approved codes of practice and carefully managing the transitional period for existing tenancies.

For Operators of non-PBSA, HMO properties, preparing for new possession procedures and notification requirements, such as the four-month notice period and restricted service window (1 June to 30 September), will ensure compliance with the stringent statutory procedures. In addition, Operators should ensure tenancy agreements are not entered into more than six months prior to the commencement date of the term so that Ground 4A can be used.

For Operators who do not qualify for PBSA exemptions and who are not HMOs, such as Operators of smaller portfolios with one to two tenants, considering alternative occupancy arrangements, such a licences to occupy, might be beneficial.

This informational piece, which may be considered advertising under the ethical rules of certain jurisdictions, is provided on the understanding that it does not constitute the rendering of legal advice or other professional advice by Goodwin or its lawyers. Prior results do not guarantee similar outcomes.