Surging rents for students – one of many ‘unintended consequences’ of the Renters’ Rights Bill
In London, there are brand new high-end developments at Kings Cross that are used by many students. But a London-based landlord tells Propertymark that though many of their student renters have never defaulted, they do have concerns about the unintended consequences that the Renters’ Rights Bill could have on the student lettings market.
“It is not clear to me how the Renters’ Rights Bill will help qualified landlords that have to accept rent in advance from foreign students. In that case, you must accept 6 months’ rent in advance and another 6 months during month 4 of a tenancy. It is hard to understand how the Renters’ Rights Bill will operate in the real world.”
What is the Renters’ Rights Bill?
During the King’s Speech in July 2024, the UK Government announced that it would like to introduce a fresh Renters’ Rights Bill, which so far consists of many measures included in the previous Renters’ (Reform) Bill under the last Conservative government.
These include scrapping Section 21 to end ‘no fault’ evictions, and other ways to protect tenants’ rights like simplifying the process of having pets in rental properties.
Other measures include introducing a Decent Homes Standard to ensure private rented properties are safe and secure, and by protecting the private rental sector via Awaab’s Law, a law that was enacted due to the death of Awaab Ishak who died at the age of two when he was exposed to mould in a social house. Labour wants private landlords to act quickly to prevent any hazards in the same way social landlords must now.
What do landlords want to ideally change about the Renters’ Rights Bill?
The London-based landlord Propertymark spoke to is happy with a lot of the measures included in the Renters’ Rights Bill such as improving housing standards and having pets in properties, but they are concerned about how much the digital property portal will cost, and they fear that the end of Section 21 could lead to a rise in the number of rent protection insurance products being offered to safeguard landlords who are struggling to retrieve rental payments from tenants.
But for them, the end of fixed-term tenancies poses a problem.
“For me personally, ending fixed term tenancies is not great. Many tenants move on after two or three years. I have people who are mobile and most of these people move in during the summer months now. My rents can be as competitive as possible, but for most landlords if you are opening it up so that tenants can leave at any point, many tenants will not relocate in December as the new university semester begins. This will lead to much longer void periods where the rooms or full properties will be empty without tenants living in them, which will mean that rents will go up.
“Fixed-term tenancies should be retained if it suits the students. Even after the first year it would mean that they are in for one year, and the landlord cannot sell or move anyone in. If I have to offer periodic tenancies, then I cannot tell others when I have units available for students.
“There must be a 12-month fixed-term because as a landlord, if I let to a student in December and they leave in May and June and then there is a four-month void, I will not then let to another student. Rents will have to go up.”
Regarding rent in advance, the landlord added: “Landlords need to be able to accept rent in advance if the person has funds but no guarantor. You must be able to accept them in some way, and the UK Government should be mindful of this.”
Another landlord Propertymark spoke to agrees. They said: “It would be impossible for international students without a UK-based credit history to prove their ability to sustain a tenancy and pay rent. Also, many students pay on a term-by-term basis. If they pay periodically, they may frequently default, or forget to pay, which can result in penalties.”
When it comes to periodic tenancies and the supply of rental properties, this landlord added: “Landlords potentially shoulder larger costs, especially if tenants change frequently, such as paying for agents’ fees, check out fees, inventory fees, cleaning fees, etc. This may push certain properties out the market, reducing supply.
“The Renters’ Rights Bill may reduce supply to the student market, because there would be no guarantee that a flat would be available for rent at the start of academic year. Also, many landlords may be put off by the increased risks and may stop using a flat to rent to students. This may increase costs to students in the end because of reduced supply.”
Other key concerns about the Renters’ Rights Bill
Sophie Lang, ARLA Propertymark Executive for Cornwall with 15 years’ lettings experience, specialising in student lettings, highlighted that in her own Homes in Multiple Occupation (HMO) portfolio, 11 per cent of properties are currently listed for sale as landlords begin to exit the market in response to the proposed reforms.
She commented: “The proposed changes will inadvertently discriminate against international students. Many rely on grants or scholarships from their home countries to pay rent upfront—a practice that may no longer be permissible under the new framework. This restriction could funnel international students toward more expensive purpose-built student accommodation (PBSA), significantly increasing their cost of living.
“The (Renters’ Rights) Bill could have far-reaching social consequences. In cities like Bristol, where the student housing crisis is already acute, students are being placed in accommodation as far away as Newport—a one-hour train journey—due to a shortage of local housing. The risk is clear: reduced access to affordable accommodation could hinder some young people’s ability to attend university at all.”
Changes to the Renters’ Rights Bill that Propertymark has campaigned for
When the Bill reached its Second Reading in the House of Lords on 4 February 2025, Propertymark repeated many of its key concerns which included letting agents’ worries about the removal of fixed term tenancies as this will reduce flexibility in the private rental sector. If removed, the end of fixed term tenancies will also end security of tenure for the tenant and a guarantee of rent payments to landlords.
The professional body added that capping advance payments at one month’s rent, and thwarting rent in advance to be taken prior to the signing of a tenancy will slash choices for tenants. They warned that a one size fits all policy will result in some tenants not accessing the market.
Propertymark also suggested to the UK Government that the proposed new ground for eviction (Ground 4A) that would enable landlords to evict students if they have graduated, be extended to properties with one or more students. However, the existing proposals would only apply to Houses of Multiple Occupancy which, by definition, require three or more tenants from two separate households to live at the property.
With considerable numbers of private landlords leaving the market, Propertymark stressed that the UK Government maintain private student accommodation.
Propertymark also said it worries about the capacity of the courts to cope with the end of Section 21 that enables no-fault evictions. The Bill in its current form may lead to an increase in contested hearings, as landlords that would previously have used no-fault provisions will instead have to show evidence for the reason for eviction.
The professional body also asked the UK Government to provide a clear timeline as to when the legislation will be implemented, that local councils are sufficiently resourced to enforce the Bill, for the UK Government to consider the impact a delay in welfare payments could have on rent arrears, and to consider the financial implications of this legislation on the supply of homes to rent.
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