The Government is moving full speed ahead with the Renters’ Rights Bill, which is set to introduce major changes to student housing later this year. Although this bill has not yet been passed by the government, student renters and landlords alike would benefit from understanding and preparing for the impact these new regulations may have.
At The Student Energy Group (TSEG), we believe in simply doing the right thing, keeping our customers and suppliers informed about the latest changes that could affect them. That’s why we’re here to break down what this bill is likely to mean for students looking for housing and letting agents managing properties.
What is the Renters’ Rights Bill?
This bill aims to increase fairness and security in the rental market. Key proposed changes include:
No more unfair evictions – Landlords will no longer be able to remove tenants without a valid reason.
Upfront rent caps – Landlords can’t charge more than one month’s rent upfront.
Bidding wars banned – Properties must be rented at the advertised price – no more competitive bidding.
Pet-friendly renting – Tenants have the right to request a pet, which landlords cannot unreasonably refuse.
Improved housing standards – All rental properties must meet the Decent Homes Standard.
While this brings big wins for student renters, the bill also plans to introduce a three-tier system that could create complex challenges for letting agents.
The “Three-Tier System” of Student Housing
Under the proposed new law, student renters will have different rights depending on the type of accommodation they live in:
- Purpose-Built Student Accommodation (PBSA) – Exempt from the bill, meaning they will continue operating as before.
- Houses in Multiple Occupation (HMOs) – If a student house has three or more tenants from different households, landlords can still use Ground 4a to regain possession in line with the academic year.
- Non-HMO Student Housing (1-2 Bed Properties) – Students renting alone or with one housemate will not be covered by Ground 4a, potentially leading to rising costs and housing supply issues.
With 80% of students renting in HMOs, this tiered system could create unequal tenancy rights, causing concerns for both students and letting agents.
What This Means For Students
Confusion About Your Rights – Different housing types could mean students may struggle to understand their legal protections, making it easier for dishonest individuals or businesses to take advantage of them.
Potential Rent Increases – Without the same protections as HMOs, landlords of 1-2 bed student properties may face challenges keeping their properties occupied in line with the academic year. To offset the risk of vacant periods, some landlords might raise rents for the months they can secure tenants. Additionally, if some landlords decide to leave the student rental market due to these challenges, the reduced supply of smaller student properties could push up demand and prices across the sector.
What This Means For Landlords
Impact on Student Tenancy Cycles – The exclusion of non-HMO properties from Ground 4a could disrupt traditional student letting cycles, making it harder to keep properties occupied year-round.
Navigating New Legal Responsibilities – Letting agents must ensure all properties comply with the new Decent Homes Standard and advise landlords on tenancy law changes.
Increased Compliance & Costs – The introduction of landlord ombudsmen, rent caps, and upfront payment limits may create additional financial and administrative burdens for landlords and agents.
Investment Challenges – With uncertainty over profitability, some landlords may exit the student rental market, impacting availability and investment in student accommodation.
What Happens Next?
The bill is expected to pass into law by mid-2025, meaning both students and letting agents will feel the impact by the next academic year.
For Students: Stay informed about your rights and understand how this bill affects your housing options.
For Letting Agents: The next step is understanding how these changes will impact your role and what you need to do to stay ahead.
Stay up to date with our blog as we’ll continue to provide updates, insights, and expert guidance to help you stay ahead.
If you ever have any questions at all, just get in touch!
