The government has announced new measures aimed at curbing the annual student housing ‘arms race’, where students often feel pressured to sign rental contracts prematurely.

The proposed changes were revealed during a Commons debate on the Renters' Rights Bill, where Housing Minister Matthew Pennycook highlighted the challenges students face in making informed housing decisions before forming stable friendship groups.

New Restrictions on Early Student Tenancy Agreements

A key amendment to the Bill seeks to prevent landlords from evicting students under Ground 4A if the tenancy agreement was signed more than six months before their move-in date.

Mr Pennycook explained:

“Those representing constituencies with large student populations will be aware of the pressures in the student rental market. Many students are forced to secure housing long before they have formed stable friendships or had time to properly assess a property's condition or location. This often results in them paying substantial deposits at a time when they are already managing significant financial burdens.”

He further noted that this practice is not only disadvantageous to students but may not be beneficial for landlords either.

Landlord Possession Rights and Student Tenancies

Under the proposed legislation, landlords of Houses in Multiple Occupation (HMOs) with student tenants will still be able to regain possession of properties between June and September. However, Mr Pennycook clarified that:

“This amendment does not impose an outright ban on signing tenancy agreements more than six months in advance. Instead, it introduces a strong disincentive against landlords pressuring students into premature commitments.”

Additional Amendments Affecting Student Landlords

1. Shift to Periodic Tenancies

MPs also voted to phase out assured shorthold tenancies (ASTs) in the student rental sector, transitioning to periodic tenancies instead.

2. Changes to Eviction Grounds

The amendment to Ground 4A means landlords of student HMOs may find it more challenging to regain possession of their properties ahead of each academic year. Propertymark, an industry body, warns that this could reduce the availability of student accommodation in university towns. Notably, the new rule does not apply to one- and two-bedroom student properties, raising concerns about the long-term security of such rentals.

3. Limiting Rent Payments in Advance

The government’s restriction on tenants paying large sums of rent upfront could impact financially vulnerable students, particularly international students, those on fixed or lower incomes, and self-employed individuals.

Propertymark cautions that overseas students, who often struggle with affordability checks, rely on upfront payments to demonstrate financial stability. However, under the new rules, landlords may only request one month’s rent in advance, plus a security deposit of up to five or six weeks' rent.

To mitigate landlord concerns, Mr Pennycook reassured that affordability checks and guarantor requests would remain options for ensuring financial security.

4. Guarantor Protections in Case of Tenant Death

A further amendment ensures that individual guarantors will no longer be liable for rent if the tenant they guaranteed passes away. Housing Secretary Angela Rayner stressed that this change is intended to protect bereaved family members from unexpected financial hardship.

Concerns from the Student Landlord Sector

The amendments have raised concerns among student landlords, who believe the new rules could significantly disrupt the student housing market. In many areas, competition for student accommodation is high, making it beneficial for students to secure housing early.

This process simplifies the search for accommodation and provides students with greater certainty. However, the restriction on possession for tenancies signed more than six months in advance has been criticised as a misjudgement of how the student rental sector operates. With the Bill potentially becoming law by the summer, student landlords will need to quickly adjust to the new regulatory framework.