Periodic Tenancies, Permanent Headaches? The Student Landlord’s Dilemma

The Renters' Rights Act 2025 will reshape student lettings, with key uncertainties still to be resolved. Landlords should prepare for challenges around tenancy length, turnover, and possession, while exploring strategies such as clearer tenancy agreements, diversified tenant bases, and early engagement with universities. Government guidance is expected in early 2026, ahead of the May implementation date.

This article was prompted by concerns raised by member John Hodgart at our meeting with Amanda Martin MP recently.

Background

The Renters' Rights Act 2025, which received Royal Assent in October, represents the most significant reform of the private rented sector in over 40 years. Its phased implementation begins 27 December 2025, with major tenancy reforms coming into effect on 1 May 2026.

For student landlords, the changes are particularly disruptive. Historically, fixed‑term assured shorthold tenancies (ASTs) have aligned neatly with the academic year, allowing predictable turnover and maintenance windows. Under the new law, ASTs will be abolished and replaced with assured periodic tenancies (APTs).

Key Concerns For Student Landlords

Loss of fixed terms: Students may opt for shorter rental periods (e.g., 9 months instead of 11), reducing predictability of income and complicating planning for the next academic year.

Uncertain turnover: With periodic tenancies, students may not vacate properties at the end of the academic year. This prevents landlords from advertising for the next cohort until departure dates are confirmed, potentially leaving properties empty well into September.

Group breakdowns: If part of a student household leaves mid‑year, landlords may struggle to fill rooms, especially outside peak letting season.

Council tax liability: Shorter tenancies could expose landlords to additional council tax costs during void periods.

Possession challenges: The abolition of Section 21 "no‑fault" evictions means landlords must rely on reformed possession grounds, which may be slower and more complex

Suggestions To Minimise Impact

Align contracts with academic cycles: While fixed terms are abolished, landlords can encourage students to commit to academic‑year occupancy through clear communication and incentives.

Diversify tenant base: Consider mixing student and non‑student tenants, or pivoting to family lets where properties are suitable.

Work with universities: Partner with local institutions to coordinate housing supply and encourage students to commit to longer agreements.

Budget for voids: Factor in potential gaps and council tax costs when setting rents, to avoid sudden financial shocks.

Stay informed: Engage with landlord associations (e.g., PDPLA) for updates, lobbying efforts, and best practice guidance.

Timeline & Open Questions

December 2025: Initial provisions begin, including rent increase limits and anti‑discrimination measures.
May 2026: Major tenancy reforms (abolition of Section 21, introduction of APTs, rent bidding ban, pet rights) take effect.
Guidance expected early 2026: The Ministry of Housing has promised detailed regulations and landlord guidance before May, but many operational details remain unclear.

Open questions include:

How possession grounds will be applied in practice for student lets.
Whether exemptions or tailored rules will be introduced for student housing.
How councils will enforce compliance and manage disputes.

Conclusion

The Renters' Rights Act aims to improve tenant security, but student landlords face unique risks. By planning ahead, diversifying strategies, and engaging with sector guidance, landlords can mitigate disruption. The next six months will be critical as government clarifies the rules and landlords adapt to a new era of student housing.

Bottom Line: Stay with students and increase the rent significantly to ameliorate the risks OR switch to a more reliable tenure.