Student rental chaos looms as Govt axes fixed-term contracts, agents warn
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More than one in three letting agents fear academic lettings cycle will collapse
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Landlords already pulling out of student market amid Renters’ Rights Bill concerns
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Alto calls for urgent rethink – as fears mount over voids, admin, and rising rents
Letting agents are warning of an approaching crisis in the student rental market just weeks before the start of the new academic year – as the Government presses ahead with its controversial Renters’ Rights Bill.
The new legislation will scrap fixed-term tenancies and replace them with open-ended, rolling contracts – a move that more than a third of agents (34%) say could blow up the student letting cycle altogether.
New data from leading property software provider Alto, the UK’s largest CRM for estate agents, which polled 250 estate agents, reveal deep unease across the sector. Agents fear that without fixed terms, students will leave mid-term, voids will spike, and academic year planning will go out the window.
One in five agents (20%) say landlords are already pulling out of the student market, and another 10% say landlords are actively reconsidering.
A further 10% of agents have even advised their clients to ditch student lets altogether in the past year.
“This is a sector built around predictability and the Renters’ Rights Bill rips that up,” said Riccardo Iannucci-Dawson, CEO at Alto. “It’s not just landlords who lose. If student lets become unworkable, young people will have fewer affordable options and more uncertainty around their housing.”
Agents also warn that the reforms could unintentionally lead to rent increases, as landlords look to recover income lost to summer voids, meaning legislation brought in to protect tenants could actually cost them more.
Students, in particular, could be hit on both sides: many already face rising rents, and some don’t serve notice under rolling contracts, leaving them liable for extra costs.
The new academic intake begins in September, and agents are already grappling with early signs of trouble:
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18% say landlords are bracing for summer voids that will gut income
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15% say admin and advertising workloads are rising fast
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12% say academic cycles no longer align with tenancies
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11% warn it’s getting harder to re-let properties during off-peak months
And while some students are turning to Purpose-Built Student Accommodation (PBSA), agents warn it’s no substitute for the thousands of flexible, affordable HMOs provided by independent landlords.
To help agents navigate the storm, Alto has invested in automation tools that simplify compliance, custom workflows that adapt to tenancy changes, and faster marketing and applicant-matching tech to minimise costly gaps. These tools are already in use across 33,000 UK agents and are designed to handle the real-world fallout of legislative reform from Right to Rent checks and rent reviews to rolling contract automation and void management.
“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,” said Iannucci-Dawson. “Without fixed-term tenancies, that balance is breaking.”
Alto is calling for the Government to urgently revisit the Renters’ Rights Bill and introduce tailored provisions for student housing.
“Removing fixed terms risks fewer housing options, and rising prices – none of which help students”, adds Iannucci-Dawson.
Offering a different perspective, the co-founder of property company The Depositary, said: “The student rental market is evolving and that’s not necessarily a bad thing. Yes, scrapping fixed terms may create short-term uncertainty, but it also forces a long-overdue rethink.
“Historically, students have been locked into 12-month contracts for 10-month tenancies, and often pay for voids they don’t use. In the new system, some landlords may push rents up to recover those gaps, but others will see opportunity. Short-term summer lets could boost yields, and improving the quality of student accommodation will become key. The smart investors will realise that better homes attract loyalty – and if a student loves where they live, they’ll want to stay. Moving is expensive, disruptive and stressful – most won’t jump ship without good reason.”
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