Student landlords are now presented with a new decision under the Renters' Rights Act regarding when to sign tenancy agreements for the following academic year. Historically, landlords have competed to secure tenants early, with properties for September often advertised before Christmas in some university towns.
The Act stipulates that for a student HMO landlord to use Ground 4A to recover possession for the next student year, the tenancy must be entered into no more than six months before the students are entitled to move in. This creates a choice for landlords who find prospective tenants more than six months in advance.
Landlords can continue to market their properties and conduct viewings as early as they wish. However, if they sign a tenancy agreement more than six months before the move-in date, they will normally give up the ability to use Ground 4A at the end of that tenancy. Alternatively, they can wait until the tenancy falls within the six-month window before signing, preserving the possibility of using Ground 4A, provided other requirements are met.
This decision involves commercial risks. Signing early could offer an advantage in a competitive market by securing tenants, but waiting to preserve Ground 4A might lead to prospective tenants choosing other properties. Peter Littlewood of B-Informed, who provides training on the Renters' Rights Act, notes that landlords need to make this choice deliberately and understand what they may be giving up by signing early from 2027.