Renters' Rights Act and Student Landlords: What Changes in 2026

PBSA vs standard student HMOs: the critical distinction

Purpose-built student accommodation (PBSA) operated by providers registered under the Renters' Rights Act 2025 can continue to grant fixed-term tenancies. Standard student houses and HMOs owned by individual landlords cannot, regardless of whether they are exclusively let to students.

This is the single most important distinction for student landlords to understand. The exemption does not apply to any property that happens to be let to students. It applies specifically to a narrow category of large-scale, purpose-designed student accommodation operated by registered providers.

What is PBSA?

Purpose-built student accommodation is large-scale residential accommodation purpose-designed for students, typically featuring:

• Individual study bedrooms with shared or en-suite facilities
• Managed common areas, laundry facilities, and sometimes catering
• On-site management staff
• Operation by a university, college, or specialist private provider (such as Unite Students, Vita Group, or iQ Student Accommodation)

To use fixed-term tenancies under the Renters' Rights Act exemption, PBSA providers must be registered under the specific provisions of the Act. Universities managing their own halls of residence will generally qualify. Large private PBSA operators are expected to register as qualifying providers.

What is not PBSA?

The following do not qualify as PBSA for exemption purposes, regardless of who lives in them:

• A standard terraced house let to four university students
• A converted flat let exclusively to students
• An HMO managed by an individual landlord, even with a full HMO licence
• A small block of flats let to students by a private landlord
• A house adjacent to a university campus, marketed specifically to students

If you own residential property that you let to students as an individual landlord (or through a personal limited company), the PBSA exemption does not apply to you. Your tenancies must transition to periodic from 1 May 2026.

What periodic tenancies mean for the student letting cycle

A periodic tenancy has no fixed end date. Students can give notice and leave at any time, subject to the notice period. Landlords cannot rely on a tenancy naturally ending at the close of the academic year. This requires a fundamentally different approach to occupancy planning, re-letting timelines, and void management.

Under the traditional fixed-term model, a student landlord's year typically looked like this:

• Tenancy runs September to June/July (9-12 months)
• Students hand back keys on a known date
• Landlord carries out check-out, makes any repairs, and re-lets for the next academic year
• Marketing for the next year often begins in November-December of the current tenancy
• New tenancy signed months in advance, guaranteeing occupancy for September

Under a periodic tenancy model, none of the above is guaranteed. Students are not contractually required to leave at the end of the academic year. They may:

• Give notice in March and leave in April
• Stay through the summer and give notice in September
• Split the group, with some leaving and some staying
• Stay for a second year without any action required from either party

Planning for occupancy without fixed terms

Student landlords will need to develop new approaches to occupancy management. The tools available are:

• Section 8, Ground 1: If you or a close family member genuinely needs to move into the property, you can seek possession on two months notice. This is not a tool for routine re-letting but may apply in specific circumstances.
• Early notice agreements: You can ask students at any point during the tenancy whether they plan to renew or vacate. They can give voluntary advance notice, which you can plan around. They are not obligated to give advance notice beyond the standard notice period, but many students will be willing to confirm their plans early to avoid uncertainty for themselves.
• Mutual agreement: If both you and the tenants agree to end the tenancy on a specific date, this is valid. A deed of surrender signed by all parties is a clean way to formalise this.
• Offering incentives for early notice: Some landlords may choose to offer a small discount or other benefit in exchange for students confirming their departure date early. This is not rent reduction under Section 13 because it is not an increase; it is a negotiated arrangement that benefits both parties.

Managing the summer void under periodic tenancies

The summer void — the period between one student group leaving and the next arriving — has always been a financial pressure for student landlords. Periodic tenancies make the timing of this void uncertain. Proactive communication and early planning are the primary tools for managing it.

In practice, students who are completing their degree and have nowhere to stay over the summer will often want to vacate in June or July. Students returning for their next year of study may want to move straight to their next property in September. This natural behaviour still aligns with the academic calendar, even if the tenancy agreement does not enforce it.

The challenge is for landlords who need certainty in order to relet. If you sign a tenancy with new students for September and the existing tenants do not vacate, you have a problem. The solution is to not sign tenancies with new students for a specific start date until you have confirmed — in writing — that existing tenants are leaving.

Practical approach for student landlords:

1. January/February: Contact existing tenants and ask whether they plan to stay for another year or vacate at the end of the academic year. Do this informally first, then ask them to confirm in writing.
2. If they confirm they are leaving: Ask them to give formal written notice once the timing is closer. A month's notice is the minimum; more is better for planning. Do not market the property for re-letting until you have confirmation of their departure.
3. If they confirm they are staying: You have no void to manage. Note their decision and re-engage in January of the following year.
4. If they are undecided: Continue to ask. You cannot force a decision, but most students will know their plans by April at the latest.
5. Marketing for new tenants: Begin marketing only after you have confirmed notice from existing tenants, or after existing tenants have formally vacated. Signing new tenancies months in advance based on assumed vacation creates legal risk if existing tenants stay.

Joint tenancies and individual room lets: which structure works better?

Student HMOs have typically been let on a single joint tenancy to all students together. Under periodic tenancies, this creates significant risk if one tenant wants to leave mid-year. Individual room lets (separate tenancies for each room) provide more flexibility but require more management overhead.

Joint tenancy model

Under a standard joint tenancy, all students sign the same agreement and are jointly and severally liable for the full rent. This means:

• If one student defaults on rent, the others are liable for the shortfall
• All joint tenants must give notice simultaneously to end the tenancy
• If one joint tenant gives notice individually, the tenancy continues for the remaining tenants

The risk under periodic tenancies is that one student wants to leave — perhaps because they failed their exams, got a job, or simply fell out with the group. Under a fixed-term tenancy, they were contractually committed for the term. Under a periodic tenancy, they can give notice and leave.

When a joint tenant gives notice and leaves:

• Their notice ends their own liability for rent once the notice period expires and they leave
• The remaining tenants continue in the tenancy and are jointly liable for the full rent
• You cannot require the remaining tenants to pay the departing tenant's share (they are already jointly liable for it)
• The remaining tenants may choose to find a new flatmate, but you have no obligation to accept the new person as a tenant
• If they ask for a new person to join the tenancy, this requires a variation of the agreement signed by all parties

Individual room let model

An alternative structure is to grant a separate tenancy for each bedroom, with shared access to common areas covered by the individual agreements. This is the model used in many HMOs and PBSA (even where PBSA uses fixed terms).

Advantages of individual room lets for student landlords:

• Each student manages their own tenancy independently — one student leaving does not affect others
• You can re-let individual rooms as they become vacant without needing to wait for the whole group
• Individual students can be added to or removed from the property without disrupting the whole arrangement
• Rent liability is cleaner: each student is responsible only for their own room

Disadvantages:

• More complex to manage: separate deposits, separate tenancy agreements, separate compliance obligations per tenant
• Greater management overhead
• Students may prefer the social clarity of a joint tenancy with friends
• Shared area responsibilities need to be clearly documented

For student landlords with larger HMOs (five or more rooms), the individual room let model may be more resilient under the periodic tenancy regime. For smaller properties (three or four bedrooms), joint tenancies remain common but require more proactive relationship management.

HMO licensing: what changes and what stays the same

HMO licensing requirements are entirely unchanged by the Renters' Rights Act. Mandatory HMO licensing applies to properties of three storeys or more let to five or more people in two or more households. Additional licensing schemes introduced by local councils continue as before. The transition to periodic tenancies has no effect on licensing requirements or licence conditions.

Student landlords operating licensed HMOs should be aware that:

• Existing HMO licences remain valid and are not affected by the tenancy structure change
• Licence conditions (relating to property standards, management, and safety) remain as before
• The switch from fixed-term to periodic tenancies does not trigger any requirement to reapply for or renew a licence
• Local councils enforcing licence conditions can continue to do so through the existing framework

Note that many local councils operating selective or additional licensing schemes have conditions requiring landlords to carry out referencing and credit checks on tenants. These conditions remain in place and apply regardless of tenancy structure. Maintain your referencing processes for all new student tenants.

Practical tip for HMO landlords

If your HMO licence is due for renewal in 2026, use the renewal process as an opportunity to review your tenancy structure with your local council's licensing team. Some councils have resources or guidance for landlords transitioning to periodic tenancies, and licensing renewal is a natural checkpoint to discuss your portfolio management approach.

Rent increases for student tenants under Section 13

Under the Renters' Rights Act, rent can only be increased once per year using Section 13, with two months notice. This applies to student tenancies exactly as it applies to all other assured tenancies. If you want to charge a higher rent for the next academic year's occupants, you must do so via Section 13 if the same tenants are staying, or simply set the appropriate rent in a new tenancy agreement if new tenants are arriving.

If the same students remain in the property for a second year:

• You can serve a Section 13 notice to increase the rent, with two months notice and not more than once in any 12-month period
• The students can accept the increase or refer it to the First-tier Tribunal for an assessment of market rent
• You cannot simply announce a higher rent for the new academic year without going through Section 13

If new students move in after existing students leave:

• You set the rent at whatever level you choose for the new tenancy
• There is no link between the previous rent and what you charge new tenants
• The Section 13 restriction only applies within an existing tenancy, not to a new tenancy

This means the primary impact of Section 13 on student landlords is where the same group continues for a second or third year. In that scenario, manage rent increases proactively: serve Section 13 notices early, in accordance with the two-month notice requirement.

Guarantors for student tenants

Requiring a guarantor for student tenants remains lawful under the Renters' Rights Act. The requirement for a guarantor is not a discriminatory restriction because it is based on financial circumstances rather than a protected characteristic. Under periodic tenancies, guarantor arrangements continue to provide the same protection, but you should ensure guarantor agreements are written to cover periodic tenancies without a fixed end date.

Student tenants typically have no employment history or credit score to underwrite their tenancy. Guarantors — usually parents or guardians — provide a backstop against rent arrears. This practice is not affected by the Renters' Rights Act.

However, a guarantor's liability under a periodic tenancy differs from their liability under a fixed-term tenancy. Review your guarantor agreement template to ensure:

• The guarantee covers a periodic tenancy without a fixed end date
• The guarantee states whether it continues if the rent changes (under Section 13)
• The guarantee specifies how it is terminated (typically by written notice from the guarantor, usually with some notice period)
• The guarantee covers arrears arising during any periodic period, not just during a specified fixed term

Guarantors themselves should be made aware of these changes. Under a fixed-term tenancy, a guarantor's maximum exposure was capped by the term length. Under a periodic tenancy, the tenancy could theoretically continue indefinitely, and the guarantor's liability could extend with it. This is a material change that your guarantors should understand.

Use an up-to-date guarantor agreement template from a solicitor or landlord association. Guarantor agreements that were written for fixed-term tenancies may need revision to work correctly in a periodic context.

Deposits under the new periodic tenancy model

Deposit protection rules are unchanged. Deposits from student tenants must still be protected in a government-approved scheme within 30 days of receipt, and the Prescribed Information must be served within the same period. Under periodic tenancies, deposits remain protected for the duration of the tenancy, however long it runs.

The deposit cap of five weeks rent (for annual rents under £50,000) applies unchanged. For student properties, this typically means a deposit of approximately one month's rent, which has not changed.

What changes is the timing of deposit return. Under a fixed-term tenancy, the deposit return process was triggered by the natural end of the term. Under a periodic tenancy, it is triggered by the tenant giving notice and vacating. The deposit protection scheme's dispute resolution service can be used as before if there are disagreements about deductions.

For joint tenancies, the deposit is held against the whole group. When a joint tenancy ends, all named tenants must agree to the deposit return and any deductions. Dispute resolution under the scheme applies to the whole deposit, not individual shares. Consider this when managing disputes involving groups of students.

Marketing and re-letting student properties

The traditional practice of marketing student properties for the following academic year from November or December — while current tenants are still in occupation — becomes legally and practically more complex under periodic tenancies. Do not sign tenancies with new students until you have confirmed that existing tenants are vacating.

Under the old fixed-term regime, a landlord could sign tenancy agreements with new students for September 2026 in November 2025, confident that existing tenants would be leaving in June or July 2026. The fixed term provided that certainty.

Under periodic tenancies, the existing tenants have no contractual obligation to leave. Signing agreements with new students before the existing tenancy has ended, or before you have a confirmed notice from existing tenants, creates a situation where you may have two groups of tenants with a legal right to occupy the same property simultaneously.

The only lawful way to manage re-letting is:

1. Confirm from existing tenants (in writing) that they intend to vacate and approximately when
2. Ask them to give formal notice when the timing is clear (typically one month before they plan to leave)
3. Only after receiving formal notice, begin marketing and showing the property to new tenants
4. Do not sign a new tenancy agreement until the existing tenancy has ended or you have an agreed and confirmed departure date from existing tenants

This changes the typical marketing timeline for student properties. You may not be able to sign new tenants in November or December as was common before. The practical reality is that many students will still want to plan ahead and confirm their housing for the following year well in advance. The process of mutual confirmation — existing tenants confirming they are leaving, landlord then signing with new tenants — can still happen relatively early, but it requires explicit rather than implicit confirmation.