The UK student lettings market is on the cusp of its most significant transformation in decades, driven by the introduction of the new Renters’ Rights Act. Research by Accommodation for Students, covering approximately 7,400 student properties, indicates that nearly half (45%) of student landlords intend to market their properties later than usual. This represents a substantial departure from the long-established cycle, which typically saw landlords begin advertising homes in October and November for the subsequent academic year.
At the heart of this shift is Ground 4A, a new student possession ground within the legislation. This provision mandates that landlords wishing to utilise Ground 4A must not enter into tenancy agreements more than six months before the tenancy start date. Historically, marketing student homes almost a year in advance provided landlords with crucial certainty that their properties would be let well before the academic year commenced. However, under the updated regulations, signing agreements too early could prevent landlords from relying on Ground 4A to regain possession of their properties.
The survey findings highlight the widespread impact of this change, revealing that 73% of landlords intend to use Ground 4A. Furthermore, 65% of those surveyed were aware that entering into tenancy agreements too far in advance could compromise their ability to rely on this new provision. This awareness is prompting a re-evaluation of long-standing practices across the sector.
While some landlords are exploring strategies to continue advertising properties in the autumn, they face operational challenges in delaying the signing of tenancy agreements until they fall within the six-month window. Existing rules around holding deposits limit how long prospective tenants can reserve a property before a tenancy agreement is finalised. This creates uncertainty about how to effectively bridge the gap between securing a tenant's interest and completing a legally compliant tenancy.
Simon Thompson, director and founder of Accommodation for Students, commented on the findings, noting that the student lettings market has operated consistently for many years. He stated that the research suggests many landlords are now reviewing their established approaches to adapt to the new legislation. While the traditional autumn lettings season is unlikely to disappear entirely, Thompson anticipates more properties becoming available later in the academic year as landlords adjust their marketing strategies.