A campaign is gathering momentum to exempt student Houses in Multiple Occupation (HMOs) from the provisions of the Renters' Rights Act 2025. Property platform Property118 highlights concerns among landlords that the new legislation could create significant disruption within the student rental sector, particularly regarding the established cycle of academic year tenancies.
The Renters' Rights Act, which is set to introduce sweeping changes to private renting in England, aims to offer greater security and protection for tenants. Key proposals include the abolition of 'no-fault' evictions (Section 21) and a move towards periodic tenancies, which would allow tenants to give two months' notice to leave at any point. However, landlords catering to students argue that these changes are incompatible with the fixed-term nature of academic year contracts, typically running from September to June or July.
Critics of the Act's application to student HMOs suggest that the move to periodic tenancies could lead to uncertainty for both students and landlords. Universities and student accommodation providers rely on a predictable turnover of properties to house new cohorts each academic year. If students were able to leave with just two months' notice at any point, it could create difficulties in ensuring a continuous supply of housing and managing property vacancies during the summer months.
The current system for student lets often involves joint tenancy agreements for a fixed term, aligning with the university calendar. Landlords fear that the new rules could complicate the process of securing new tenants for the subsequent academic year, potentially leading to increased costs and administrative burdens, which could ultimately be passed on to students through higher rents. Furthermore, the specialised nature of student HMOs, often furnished and managed to cater specifically to student needs, is cited as a reason for a distinct regulatory approach.
While the Renters' Rights Act is designed to empower tenants, the call for an exemption for student HMOs underscores a tension between broad legislative reform and the specific operational realities of niche rental markets. The debate highlights the complex challenge of balancing enhanced tenant protections with the need to maintain a viable and stable supply of housing, particularly in critical sectors such as student accommodation.