Renters’ Rights Bill will leave students worse off warns industry expert
As more student landlords exit the market, the Renters’ Rights Bill risks leaving students worse off, warns a leading industry figure.
In an exclusive video interview with Property118, ARLA Propertymark regional executive for Cornwall, Sophie Lang, warns more student landlords are leaving the market than ever before.
Sophie also explains that it’s unfair for purpose-built student accommodation to be exempt from the Decent Homes Standard while still being allowed to issue fixed-term tenancies, unlike the private rented sector.
Watch the full video interview below
More landlords selling student accommodation than ever before
Sophie warns that in the last 12 months, she has seen more landlords selling student accommodation than ever before in her 20 years in the industry due to the Renters’ Rights Bill.
“That isn’t a coincidence,” Sophie says.
“Landlords are worried about what’s coming and how the Renters’ Rights Bill is going to work in practice because the government can’t give the answers on how it is going to work.
“Any uncertainty causes fear, and the fear reaction is to run away. We are seeing more landlords sell up, and my concern is that these properties aren’t being sold to other investors to keep them in the student market but rather to owner-occupiers.
“This means they will be removed from the student rental market and less housing will be available for students.”
Renters’ Rights Bill will leave students worse off
Sophie also warns the Renters’ Rights Bill will leave students worse off.
She tells Property118: “I understand why the bill is being brought forward, but it is designed for the residential market and doesn’t take into account the student market or how much it will negatively impact students in the UK and could leave them worse off.
“My concern is that supply will go down and the cost for landlords will go up, which inevitably means rents will increase and make it less affordable for students to attend university.
“Students go to university to get a good education and careers, but now they face the stress of not being able to find a place to live. For many vulnerable students, university will no longer be an option.”
Removing fixed-term tenancies will cause huge uncertainty
Sophie explains that abolishing fixed-term tenancies and replacing them with periodic tenancies is one of the biggest challenges the Renters’ Rights Bill poses for the student rental market.
She tells Property118: “The student rental market runs in a very set cycle. We know when the term times are and when the year ends. It was very easy to have a fixed-term tenancy, which gave everyone peace of mind that they had their housing sorted.
“Removing fixed-term tenancies will cause uncertainty for landlords and tenants because it means that fixed-term tenancies are no longer there as a protection.”
In the Renters’ Rights Bill, Ground 4A, is designed to allow landlords to regain possession of student HMOs to re-let them to full-time students. However, there are some important caveats to this ground.
Sophie explains: “Ground 4A will only apply to tenancies with three or more shared students. If it’s a one- or two-bedroom accommodation, it won’t be covered under this ground. In those cases, the landlord will need to rely on the tenant giving notice or on other grounds included in the bill.”
Tenants could leave part-way through a tenancy
Sophie also says many student landlords are worried about void periods.
“The student year runs from September to June, and if tenants can give notice whenever they want, they could leave part-way through the tenancy,” Sophie says.
“The issue we are going to see is that the landlord can’t find another group mid-year through the cycle. In a lot of areas, they have Article 4, which means the landlord must have planning permission to run the property as a student-run HMO. If the landlord changes the use of that property, it means they lose their Article 4 status.
“It’s not like the landlord could then rent it on another basis to cover those void periods.
“This could lead to empty properties, and in the middle of a housing crisis, that’s the last thing we need.”
Banning rent in advance makes no sense
Under the Renters’ Rights Bill, landlords and agents will no longer be allowed to accept large amounts of rent in advance.
Sophie warns the government have not thought through the consequences of banning rent in advance, particularly for students.
She explains: “Many students like to pay their rent upfront when their student loan comes in. It means they know their term is paid for, and they’re sorted.”
Sophie also says she’s confused by the government’s position, as it’s usually the tenant, not the landlord, who asks to pay upfront.
She explains: “A lot of the time, when we ask for rent in advance, it’s at the tenant’s request. It’s not necessarily the landlord, unless it’s international students who don’t have a UK-based guarantor.
“This is a tenant-led option that helps them manage their finances. Banning it makes no sense.
“It will limit students’ access to affordable housing, and at a time when we’re trying to encourage more young people into higher education, it could reduce access, especially for the most vulnerable. You’ll end up with only the wealthiest being able to go to university.”
Unfair for purpose-built student accommodation to be exempt from regulations
Previously, a Property118 article revealed that purpose-built student accommodation will be exempt from the Decent Homes Standard, while landlords may have to pay tenants up to two years’ rent for failing the standard.
Sophie says it’s unfair that purpose-built student accommodation will be exempt from most of the regulations in the Renters’ Rights Bill.
She says: “If we are exempting purpose-built student accommodation from the Decent Homes Standard then we are not setting the standards of what purpose-built should be and that’s not fair on students.
“We are expecting them to take subpar accommodation, which should not be the way it is.”
Sophie also points out purpose-built student accommodation will still be able to issue fixed-term tenancies.
She says: “Purpose-built will still be able to function on the normal fixed-term basis, which is great, but I don’t understand why they can’t exempt private residential student landlords because they are doing the same thing.
“The only thing that makes it different is the purpose-built student accommodation has been built by developers but that’s the only difference, they are still providing accommodation to students. It’s unfair and will cause disparity between the two tenures for students.”
Sophie also points out many students prefer renting from the student rental market as it’s cheaper than purpose-built.
According to Save the Student’s National Accommodation Survey 2025, the average monthly rent is £532 compared to £615 for student halls.
Propertymark are doing great things to be the voice of our industry
Sophie explains how her property career started and how it wasn’t what she set out to do.
Sophie tells Property118: “As anyone you ask in the property industry will tell you, it wasn’t what I set out to be and I accidentally fell into property.
“I finished my law degree and got an administrative job working for a letting agency, and the rest, they say, is history!”
As Sophie’s passion for property grew, she decided to join Propertymark. She has worked her way up through the organisation and is now the Regional Executive for Cornwall.
She explains: “I look after members in the Cornwall area and promote Propertymark in the region. I was then asked to join the Propertymark Advisory Board.
“I chose to be part of that because Propertymark are doing great things to be the voice of our industry for landlords and letting agents. They’re also changing the shape of legislation and regulation, and I wanted to be part of that voice so I could help change what we do.”
Propertymark has been lobbying the government to protect the student rental market
Sophie says the policy team at Propertymark has been actively lobbying the government to help protect the student rental market.
She explains: “Propertymark has been on the pulse of this issue and has been lobbying hard. The policy team has been speaking at every stage of the Renters’ Rights Bill to provide evidence.
“Along with its members, Propertymark has sent more than 800 letters to MPs and members of the House of Lords raising concerns about the Renters’ Rights Bill, particularly regarding the student rental market.
“Propertymark has put forward suggestions, including whether private rented student accommodation should be exempt from parts of the bill and that fixed-term tenancies should still be allowed for student landlords.
“The Lords members are responding, and some amendments have been made to help protect the student rental market. However, we still have to wait and see if those suggestions are fully taken on board.”
New sanction rules mean more work for agents
On the new sanction rules for letting agents, Sophie says it will mean more work for agents.
Under the new rules, agents must carry out sanctions checks on all prospective landlords at the point of instruction, and on all tenants before a tenancy agreement is finalised.
Sophie explains: “This means extra work for letting agents as we have to check every landlord, tenant and guarantor, and also provide ongoing monitoring.”
She also warns letting agents could face fines of up to £1 million or even prison.
She adds: “With anti-money laundering checks, there are high fines, and it can be criminal. Agents risk losing their client money protection insurance if these checks aren’t done, which means we would lose are ability to act as agents. The fines involved are very serious.”
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Member Since September 2015 - Comments: 1013
10:36 AM, 22nd May 2025, About 11 months ago
By exempting PBSA the Government is proving it is anti-private Landlord and in reality don’t care about student tenants.
If the Government was legislating for the benefit of students the laws would apply to all student accommodation irrespective of type/tenure.
Before very long all student accommodation will be PBSA, and therefore a lower standard than previous private provision BUT at a higher price.
Very surprised that the NUS isn’t all over this – but then they are traditionally Labour supporters.
Member Since May 2017 - Comments: 763
11:20 AM, 22nd May 2025, About 11 months ago
Reply to the comment left by Gromit at 22/05/2025 – 10:36
Two tier Kier at it again
Member Since July 2013 - Comments: 754
3:44 PM, 22nd May 2025, About 11 months ago
Reply to the comment left by Gromit at 22/05/2025 – 10:36
Universities as well as NUS should also be paying attention, because if PRS accommodation outside of PBSA is unavailable, the number of students will diminish and universities will fail.
Yet more of the unintended consequences of an ill conceived piece of politically motivated legislation that creates more problems than it addresses.
Member Since September 2015 - Comments: 1013
5:31 PM, 22nd May 2025, About 11 months ago
Reply to the comment left by Freda Blogs at 22/05/2025 – 15:44
There’s a lot of big money going into PBSA as its lucrative sector and generally less problematic than the wider PRS. For one it tends to be in smaller geogrphic areas (i.e. near universities). The big corporations don’t like small units springled acros a wide area.
It wouldn’t surprise me (I’d be more surprised if not) that the PBSA corporations don’t looby Governemtnhard and make donations to party funds to garner competitive advantage over privat Landlords.
Member Since March 2024 - Comments: 5
11:17 PM, 22nd May 2025, About 11 months ago
PRS Student LLs must assume a void of a minimum of 6 weeks but up to 8. Loss of rent, empty property Council Tax (doubled) and buildings insurance increased risk and premium just 3 obvious problems…translates into immediate minimum of 15% rent increase plus inflation. So almost 20% assuming current levels of supply just to maintain existing incomes.
Leading to a two tier Uni education for those with parents who can pay and those that can’t for 2nd and 3rd years.