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

The Renters’ Rights Act 2025 (RRA) has fundamentally changed the landscape of the UK private rented sector (PRS), 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 the:

1. RRA’s implementation timeline
2. RRA’s key impact on owners and operators of student accommodation (collectively referred to as “operators” hereafter)
3. Grounds for possession in the RRA that benefit certain operators and alternatives that other operators might want to consider
4. Consequences of noncompliance and the continued need for court possession orders
5. Next steps for operators to prepare for the implementation of the RRA’s first phase

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 road map for the implementation of the RRA in three phases.

The first phase will bring in the new tenancy regime envisaged by the RRA, described in more detail further in this article. This phase will come into force on 1 May 2026. According to Matthew Pennycook, the minister of state for housing and planning, this timing provides “sufficient time for landlords and letting agents to prepare effectively.”

While the date of implementation of the first phase is now known, the government acknowledges in its road map 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 operators can begin preparing for the transition. For tenancies created before 1 May 2026, operators must provide tenants 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.
• Raise standards in the PRS through (i) the introduction of the new Decent Homes Standard and (ii) the extension of Awaab’s Law, aka the Hazards in Social Housing (Prescribed Requirements) (England) Regulations 2025. This extension will mean that landlords must address hazardous substances, such as mold and damp.

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 PBSA Operators?

The RRA provides that all existing assured tenancies and assured shorthold tenancies (ASTs) will automatically become assured periodic tenancies (APTs) on 1 May 2026. APTs are rolling tenancies that continue indefinitely (on monthly bases or for other specified periods), rather than having certain end dates 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. While 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 vacation 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 will likely be difficult to fill. Conversely, if a student refuses to leave at the end of the academic year, availability issues for incoming students could emerge. Operators would face difficulties in effectively planning their occupancy strategies when 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 that do not hold ownership interests. The alternative, fixed-fee arrangements, would likely prove unattractive to owners that might see it as too risky. An additional financial consideration arises when students pay annual fees in advance. If such students subsequently terminate their tenancies prior to year-end, then operators need to determine whether partial refunds are required, thereby restricting the deployment of such funds as working capital or investments.

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 can 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, Ground 4A 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, at the relevant time, that

• 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, when the “tenant” under a tenancy agreement comprises more than one person, all persons must meet the Student Test for operators to use Ground 4A.

If the Student Test has been satisfied, operators of HMOs that want to use Ground 4A must serve four months’ notice to tenants. 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 that want to use Ground 4A is the timing of tenancy agreements. If a tenancy agreement was entered into more than six months prior to the commencement date of the term, Ground 4A 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 that will convert to APTs on 1 May 2026, the House of Lords has acknowledged that transitional arrangements are necessary to protect against the issues previously described. Schedule 6 of the RRA introduces these transitional provisions through modifying the new statutory Ground 4A. However, the key point to note is that these provisions only apply to PBSA and 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:

• Accreditation Network UK (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
• Universities UK/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 also, as previously mentioned, only applies to PBSA.

To use 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 a 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 more 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 that do not meet the criteria of a qualifying operator or that operate non-PBSA HMOs may wish to consider alternatives to granting tenancies to avoid being captured by the provisions of the RRA.

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

Operators should, however, approach licenses 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 license 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. When 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 when licenses to occupy are used and the tenant does not vacate at the end of the term, a court order is required before the premises can be reclaimed.

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 pounds. For more serious offences, such as using a ground for possession despite knowing a court would not grant a possession order, penalties can be up to 40,000 pounds.

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 that 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, prepreparing draft notices to issue on 1 May 2026 will ensure compliance with the stringent transitional notice periods. 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 avoid entering into tenancy agreements more than six months prior to the commencement date of the term so they can use Ground 4A.

For operators that do not qualify for PBSA exemptions and are not HMOs, such as operators of smaller portfolios with one to two tenants, considering alternative occupancy arrangements, such as licenses 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.