Eddie Lever was able to leave his tenancy more easily because of the Renters' Rights Act, which fundamentally reshaped how students can occupy private rental housing. When the legislation came into force in May, it was hailed as the most significant tenant protection reform in England for a generation, granting millions of private renters greater stability and security. According to BBC News, the law has also triggered substantial upheaval in the student rental sector, creating new pressures for landlords who previously relied on binding annual contracts.
The 20-year-old student had completed his first year at the University of Exeter when he realised the course was not his path. He wanted to pursue international relations at the University of York but had already committed to a house for the following year. Under the old system, he would have been locked into the full academic year. Instead, the Renters' Rights Act allowed him to provide two months' notice and exit the tenancy without further financial obligation.
How did the law change tenancy contracts?
The legislation abolished fixed-term tenancies that previously bound renters to contracts for a set number of months. For students, these contracts typically ran for the entire academic year. According to government guidance, most existing private tenancies became rolling tenancies on 1 May 2026, meaning tenants now pay rent weekly or monthly with no predetermined end date. University-owned halls of residence and Purpose-Built Student Accommodation remain exempt from these rules and can still offer fixed-term contracts, so the change primarily affects students renting from private landlords.
The shift reflects a broader principle underpinning the Act. The government's guide explains that fixed terms could leave renters liable for rent even when circumstances changed or a property was below standard; the Act replaced them with periodic tenancies. This change has particular significance for students whose circumstances can shift rapidly.
What benefits do students gain from the new rules?
Eddie's experience illustrates the practical advantage.
If the Renters' Rights Act wasn't a thing, I don't think I would have been able to move universities because I would have been locked into the full [year] contract. It would have made it unaffordable.He was signed to a joint tenancy, and when he left, the arrangement ended for the entire household. Fortunately, a friend seeking accommodation took his place, allowing his housemates to sign a new agreement. He recognises this outcome could have been far more problematic without a replacement tenant.
Despite this risk, Eddie believes the flexibility outweighs the downsides.
If you were to fall out with your flatmates or if you decide that university is not for you, being locked into a full-term contract can be really prohibitive financially. So without that flexibility, people can really be locked into situations that they don't necessarily want to be in.
Lewis Wilson, vice president for higher education at the National Union of Students, points out that the flexibility also enables students to reduce costs by returning home during summer breaks. Previously, many student rental contracts extended through the summer after courses ended, forcing students to pay rent during months when they were not in residence. Students can now choose to move out earlier if they wish.
Wilson also highlights broader protections within the Act. The legislation bans landlords in England from evicting tenants without a reason, a measure campaigners argue strengthens renter security and encourages tenants to request repairs without fear of retaliation.
What challenges do landlords face?
The flexibility students gain comes at a cost to landlords' certainty. The Act does introduce a specific ground allowing landlords to evict groups of students at the end of the academic year if they intend to re-let the property to students. However, Chris Norris, chief policy officer at the National Residential Landlords Association, identifies a more pressing concern: tenants choosing to leave before the academic year ends.
This risk differs from that faced by family tenants, who are typically less likely to vacate after only a few months. Norris warns that the end of fixed-term tenancies means student houses could sit empty over summer after courses finish—or even earlier if tenants depart mid-year. He adds that landlords now struggle to rent properties for short periods, as they cannot predict tenant duration or guarantee availability for students in autumn.
Norris acknowledges the legislation is still in its early stages and many landlords are treating this year as a test period to understand how the changes will affect their businesses in practice. Purpose-built student accommodation remains outside the new rules for contracts signed after 1 May 2026, while existing PBSA tenancies were affected, creating a two-tier system in the student housing market.
Norris cautions that some landlords may respond by raising monthly rents to offset the risk of summer vacancies. In extreme cases, he suggests, landlords might sell properties or exit the student rental market entirely, reducing supply and driving up prices. This concern aligns with broader market trends: UK rental costs are accelerating after a three-year slowdown, with property experts forecasting 4-5% annual rises by year-end as supply constraints and the new Renters' Rights Act reshape the market.
What are landlords doing in response?
Sue Lawes, who rents three shared houses to students in Norwich, expresses concern about the changes. While she does not want to raise prices, she acknowledges that if her houses remain empty over summer because students end their tenancy after final exams, she may have no choice. She has already moved the start date of her tenancy agreements to August instead of September to reduce the risk of summer vacancies.
However, she warns that if tenants depart earlier in the year, maintaining profitability becomes difficult while covering costs including her mortgage, council tax and utility standing charges during vacant periods.
Landlords are going to find it very, very hard to absorb those void periods. Landlords will put prices up and students are going to pay.
Lawes supports the Act's aim of granting tenants greater security and agrees students should be able to leave if landlords fail to carry out repairs. However, she advocates allowing landlords to offer fixed-term contracts aligned with the academic year to prevent properties being left empty over summer. She argues that higher monthly rents would increase upfront costs for students and raise overall expenses for those who continue renting through summer.
What happens next for student landlords?
From 2027, landlords using Ground 4A—a specific eviction ground for student properties—must give four months' notice for a tenancy to end between 1 June and 30 September. This extended notice period will provide landlords with more time to plan for potential vacancies but may further complicate their ability to respond quickly to tenant departures.
The tension between student flexibility and landlord certainty remains unresolved. While the Renters' Rights Act has delivered on its promise to free students from restrictive annual contracts, the market consequences are still unfolding. Whether landlords respond primarily through rent increases, supply reductions, or operational adjustments will shape the affordability and availability of student housing in coming years.
