How the Renters’ Rights Bill affects HMO’s and student lets

September always signals fresh starts. New seasons, new routines, and for thousands of students, a new academic year. Naturally, that turns our attention to the student property market, particularly HMOs (Houses in Multiple Occupation) and Purpose-Built Student Accommodation (PBSA).

This year, however, there’s an even bigger shift on the horizon. The Renters’ Rights Bill, the most significant piece of rental legislation in three decades, is set to reshape how student accommodation is let and managed.

Currently paused until after the Labour Party conference, the Bill is expected to gain Royal Assent by the end of October 2025, at which point it will become the Renters’ Rights Act. Once in force, it will bring major changes for landlords, with full implementation timelines to be confirmed soon.

In the meantime, we’ve broken down the core reforms most relevant to student landlords and PBSA providers, along with what they mean for you and your properties.

Purpose-Built Student Accommodation (PBSA)

PBSA is being removed from the assured tenancy system. Instead, these tenancies will become common law tenancies, meaning they can remain fixed-term. The Protection from Eviction Act will still apply, but PBSA providers must sign up to a Government-approved code of practice (such as ANUK or Unipol) to qualify for the exemption.

If you operate PBSA, it’s essential to:

• Confirm you are signed up to a recognised code of practice.
• Review your existing leases.

Plan for how the move to common law tenancy status may affect renewals, lease terms and tenant relationships.

Houses of Multiple Occupation (HMOs)

The Renters’ Rights Bill does apply to HMOs, as they are typically let on ASTs. This means:

• No more fixed-term ASTs: all existing tenancies will convert to rolling, periodic agreements.
• Section 21 notices abolished: possession must now be sought using defined statutory grounds.

You will need to review all current HMO tenancies and ensure any possession notices are served on the correct grounds. In addition, a new discretionary ground, Ground 4A, has been introduced for student HMOs, allowing evictions ahead of a new academic year, subject to strict conditions.

One- and two-bedroom properties used by students

Smaller student lets are treated similarly to HMOs under most aspects of the Bill. However, some provisions, such as Ground 4A, do not currently apply as these properties fall outside the definition of an HMO.

If you own or manage these properties, assume the majority of reforms will still apply and keep an eye on possible changes, as ministers are considering extending certain protections.

Key new grounds for possession in HMOs (incl. student HMOs)

To regain possession under the new regime, landlords must rely on statutory grounds. Some are mandatory (the court must grant possession if proven), while others are discretionary (the court may grant possession).

Relevant examples include:

• Mandatory grounds: landlord or close family requiring occupation, intention to sell, serious rent arrears (3+ months), or serious antisocial/criminal behaviour. Notice periods will apply.
• Ground 4A (discretionary, student HMOs only): allows landlords to regain possession ahead of a new academic year, provided:
• The property is an HMO with 3+ bedrooms.
• In joint tenancies, all tenants are full-time students.
• Four months’ notice is given.
• The notice expires between 1 June and 30 September.

Whether you have a student let or an HMO, or are thinking about one as your next investment, our expert team of property managers can offer support for landlords navigating these changes. If you have any questions about the Renters’ Rights Bill or what you need to do to stay compliant, contact our teams today.