Concerns have been raised over the proposed Renters’ Rights Bill, which could jeopardise 32% of student properties - specifically one and two bedroom houses and flats - that are a crucial part of the student rental market.
As it stands, these homes would be left unprotected, risking a major housing shortage for students by the 2026 academic year if the legislation goes forward without amendments.
The core issue lies in the exclusion of one and two bedroom properties from the same protections afforded to Houses of Multiple Occupation. Internal data from accommodationforstudents.com shows that 32% of all house and flat listings on the platform consist of these smaller properties, which have become more popular since the Covid-19 pandemic.
Without changes to the bill, many landlords may withdraw these homes from the student market, resulting in a serious shortfall of available accommodation.
Student landlords are particularly concerned about the ban on fixed-term tenancies, which has been a pillar of the private rented sector. These contracts provide certainty about the duration of a tenancy, allowing landlords to plan for the academic rental cycle. Under the new legislation, fixed-term Assured Shorthold Tenancies will be replaced by rolling tenancies, meaning tenants can give just two months' notice to leave at any time.
This change creates significant risks for landlords, who will no longer have guarantees that students will vacate properties at the end of the academic year. HMO properties will receive a special dispensation, allowing landlords to reclaim properties in the summer to prepare for the next cohort of students, but this crucial protection does not extend to one and two bedroom properties, which are in the vast majority of circumstances not registered Houses of Multiple Occupation.
As a result, smaller landlords may decide to exit the student rental market entirely, reducing the supply of student housing, particularly for postgraduates, international students, and smaller groups who rely on one and two-bedroom homes. This gap in the legislation could drive rents higher for the remaining available properties, adding financial strain on students already struggling with rising living costs.
Even before the proposed changes, student rents have already seen sharp increases. According to recent data, rent for student houses has increased by 13.9% over the last 12 months, while rent for student halls has surged by 15.7% in the same period. With the exclusion of smaller properties from the Renters’ Rights Bill, there could be even further upward pressure on rents, making it even harder for students to find affordable accommodation.
Accommodationforstudents.com is urging the government to reconsider the current provisions of the Renters’ Rights Bill and extend the summer possession dispensation to one and two bedroom houses and flats used for students. This amendment is crucial to ensure that landlords of smaller properties have the security to continue offering their homes to students without the financial and operational risks associated with rolling tenancies.
If no changes are made, the result will be fewer housing options for students, increased competition, and higher rent prices, exacerbating the affordability crisis at a time when many students are already facing economic challenges.
Simon Thompson, CEO of Accommodationforstudents.com said: "One and two bedroom homes play a vital role in the student housing market, offering flexible and private living arrangements that are often preferred by smaller student groups. By failing to extend the same protections granted to HMOs, the government risks losing nearly a third of these homes from the market. The consequences will be devastating for both students and landlords."
