Results day for student housing - Renters’ Rights Act 2025

Many of the changes in the Renters’ Right Act 2025 (RRA) will come into force on 1 May 2026. Existing residential assured shorthold tenancies will convert into rolling monthly tenancies and fixed term tenancies will become impossible. The abolition of ‘no-fault’ evictions will extend tenants’ right to remain in their home. For universities and the wider student accommodation sector, it’s time to revise how these changes apply to student lettings.

When we refer to universities below, we include the colleges and halls of Cambridge, Durham and Oxford Universities as well.

Lettings by universities - students

The RRA doesn't affect university student lettings very much.

The exemption from the assured tenancy rules for student lettings by universities in paragraph 8 of Schedule 1 of the Housing Act 1988 remains. To fall under this exception, the letting agreement must be between the university and the student who is pursuing, or intends to pursue, a university course of study. The good news for the sector is that these student lettings can continue to last for a fixed term that aligns with the academic year.

Conditions apply though. A university must pay close attention to check whether the exception applies. If the university has in fact granted an assured tenancy, in breach of the new rules, then it could risk civil fines, or even criminal offences for long or repeated breaches. Potential traps include:

1. Course for each student: Each letting must be to a person pursuing a course of study provided by the university. Undergraduates and many post-graduates’ positions will be clear, but it may be less clear for other students, such as post-docs.
2. Take care with couples: If a student and their non-student partner occupy student accommodation, then the letting must be to the student alone.
3. Acquiring private student housing: The exception only applies to lettings by a university. If a university acquires student housing in the middle of an academic year or with student lettings already granted by organisations outside the exception, those tenancies will become periodic tenancies under the RRA and the university will have to rely on a statutory ground in order to terminate. The acquisition does not change the status of the tenancy when it was granted. See below for the position of PBSA landlords. 

Lettings by universities – non-students

Accommodating non-students, such as tutors or other staff, or letting surplus properties on the open market will change more significantly under the RRA.

The exception for student lettings cannot apply. Assured shorthold tenancies give universities flexibility to end an arrangement when employment ends or they need more student accommodation. They can currently serve two months’ notice to terminate the tenancy after the end of any fixed term. This is known as the ‘no fault’ or “section 21” procedure. 

From May 2026, without the option of ‘no fault’ evictions, landlords will have less flexibility. Like other private landlords, universities will only be able to terminate an assured tenancy to a non-student if they can use one of a list of specific grounds in the RRA. The position for employees is clearer than for other tenants.

For their employees, universities may be able to use Ground 5C. This applies where accommodation is let to an employee of the university because of their employment, either in temporary or permanent roles or where accommodation is provided as part of a relocation package.

When the employment or the need for temporary accommodation ends, the university has grounds for ending the arrangement. The university may well require the property back so it can provide it to a different employee. Tenancy agreements for employment need to warn the employee about the potential termination option expressly in the agreement when it is granted.

If a university college or hall at Cambridge, Durham or Oxford is providing accommodation to an employee of its university as part of a wider arrangement between the two bodies, then this arrangement must be clearly set out in both the agreement between the university and college, and in the tenancy agreement with the employee.

Universities may still face challenges in obtaining possession at the right time if the former employee resists leaving. Obtaining possession through the courts using statutory grounds may take longer. There will no longer be a ‘paper-based’ procedure as the courts need to check whether each ground applies so there will be more court hearings in possession claims. 

Certain flexible living arrangements will continue to fall outside the RRA’s new residential letting regime and so can be used by universities for non-students. These include: 

1. A service occupancy can be used where an employee receives accommodation from their employer and it's either essential that the employee lives there to perform their role; or their contract requires that they live there to perform their role better. These situations will be relatively rare for universities apart from perhaps caretaking roles for buildings or people.
2. Creating a licence to occupy rather than a tenancy is difficult for accommodation. To be a licence, the agreement cannot allow the occupier ‘exclusive possession’ or control of their accommodation, allowing owners to enter at any time. Many people understandably expect a reasonable degree of privacy in their home and will find this intrusive. The risk is that such an arrangement may be found by a court to be a tenancy falling with the assured tenancy regime. The closer accommodation is to a hotel-style arrangement the better. The university providing services such as room cleaning will help the arrangement to be a true licence. The university should also retain the ability to move the occupier on short notice to other accommodation. Universities’ ability to offer similar accommodation nearby may help to reduce objections by occupiers to this right.
3. A tenancy with a low rent meaning less than £250 per year outside London or £1,000 per year inside London, although these may not meet financial expectations. Universities may be scrutinised if other financial arrangements apply that may be treated as disguised rent.  An example would be by agreeing a reduced salary or asking the tenant to pay for other services.

Great care would be needed in using any of these arrangements. If a university grants what is actually an assured tenancy within the RRA, that organisation might inadvertently commit an offence. The RRA prohibits steps that a landlord would regard as normal for a non-assured tenancy such as seeking possession without using the correct legal process. 

Lettings to students by non-university landlords  

Private landlords offer a lot of student accommodation, especially for second- and third-year undergraduates. These will currently be let on assured shorthold tenancies. The RRA introduces a new statutory ground, Ground 4A, which enables private landlords to obtain possession of Houses in Multiple Occupation let to full time students.

This is designed to allow private landlords to relet the property again to other full time students. It also avoids graduates remaining if they obtain a job in their university area. An HMO means (broadly) living accommodation let to more than one household who share basic amenities such as a kitchen or bathroom. This may suit many students but may appeal less to family groups or mature students. 

HMOs are closely regulated to maintain standards for tenants. The RRA will introduce new registration requirements for all landlords (including any universities and PBSA providers offering relevant properties to non-students) and their HMO properties if letting them on assured tenancies. There will also be a new ombudsman to settle any disputes.   

A second source of privately-rented student accommodation is the growing purpose-built student accommodation sector. 

• PBSA landlords who comply with UNIPOL and ANUK student housing codes approved under section 233 of the Housing Act 2004 will soon be in a similar position to universities with their own exemption from the assured tenancy regime. The details of that exemption will be set out in promised regulations, but the government’s implementation plan promises to achieve this by May 2026. Until this happens, new lettings will be difficult to grant on the expected terms but this should be in place for lettings for the 2026-7 academic year.  
• Other PBSA owners who let accommodation directly to students must comply with the new RRA rules with rolling monthly tenancies. For buildings that are not HMOs, they can only rely on other grounds in the Housing Act 1988 such as building sales and redevelopment. This will change the landscape significantly for these landlords from May 2026.  

Indirect pressure for change?

Many students have a beneficial relationship with their university concerning accommodation and will accept their needs to control their student housing stock. However, it's possible that some may argue for more flexibility similar to the RRA rules for the general public. Here are some thoughts on what student bodies may ask university and PBSA landlords to consider:

Easier termination

Students with private landlords will be able, from May 2026, to end their tenancy on two months’ notice at any time and need not commit to a fixed term. Savvy students may terminate their tenancies at the end of the summer term to avoid paying rent over the summer when they live elsewhere. Private landlords may then start assured tenancies under the RRA to students from the start of the summer to avoid this shortfall, moving letting activity earlier in the year.

Limiting landlords’ rights to evict

Private landlords will only be able to evict tenants using specific grounds but a university will have more freedom.

Pets

Tenants outside the sector will have an implied right to have pets subject to landlord consent and this may appeal to students wishing to bring their pet to university.

Repairs

Whilst much new or refurbished student housing stock is of a high standard, private landlords will have to spend to comply with new assurances about the condition of the accommodation such as the Decent Homes Standard.

Limited rent increases  

Many universities seem likely to retain annual lettings for undergraduates but post-graduates and other tenants may prefer longer lettings. If so, they may wish to import some of the restrictions on rent increases such as allowing only one increase per year or restricting the level to market rent.

Overview

The RRA is already having a considerable impact on the education sector. This will be an interesting academic year as the rules start to shape the market and more regulations appear. The risks of voids and lost income for landlords remain but it is too early to assess the effect on rents or other terms of student lettings.  

Contact Mills & Reeve’s property education sector experts to discuss the Act’s effects on your plans.