Student housing crisis looms with the end of fixed-term tenancies

Student lettings experts are warning that the move away from fixed-term tenancies to periodic contracts could unravel the academic letting cycle.

Agency software firm Alto says the Renters’ Rights Bill will leave students and landlords grappling with uncertainty just weeks before the new university term begins in September.

It has carried out a survey of 250 estate agents and found widespread concern.

More than a third (34%) of agents predict the end of fixed-term contracts could devastate the student letting system.

Without the structure of predictable tenancy periods, agents fear students may exit tenancies mid-year, leading to a surge in vacant properties and disrupted planning for the academic calendar.

Agents want to help landlords

The firm’s chief executive, Riccardo Iannucci-Dawson, said: “We’re hearing the same thing from agents again and again: they want to support students and their clients, but they need a system that actually works.

“Without fixed-term tenancies, that balance is breaking.”

He added: “Removing fixed terms risks fewer housing options and rising prices – none of which help students.”

Alto also says that while some students are turning to Purpose-Built Student Accommodation (PBSA), agents stress it cannot replace the affordable, flexible houses in multiple occupation (HMOs) offered by private landlords.

Student landlords leave

Alto says the Bill is already having an impact with one in five agents (20%) reporting that landlords have withdrawn from the student market.

And another 10% considering an exit.

A further 10% of agents have actively recommended their clients abandon student rentals over the past year.

The Bill could also drive-up costs for students as agents warn landlords may raise rents to offset losses from summer vacancies, undermining the government’s aim to protect tenants.

Students already facing escalating rents could be further burdened if they fail to give notice under rolling contracts, incurring unexpected charges.

RRB issues for landlords

Alto’s survey also highlights other issues with the Bill, including:

• 18% of agents say landlords are preparing for income-draining summer voids
• 15% report rapidly increasing administrative and marketing workloads
• 12% note a growing mismatch between academic cycles and tenancy agreements
• 11% highlight challenges in re-letting properties during quieter months.