Landlords Warn Renters’ Rights Act Will Worsen Student Housing Shortage

Student housing landlords nationwide have welcomed new legislation as an important step toward fairer accommodation – but warned unclear rules and poor planning could disrupt students’ lives.

With the Renters’ Rights Act officially signed into law this week, leading lettings agency loc8me is now calling on the government to urgently clarify the new rules, as the Act could create problems in shared homes and leave tenants with fewer options.

While the agency has welcomed efforts to deal with rogue landlords, it says the Act fails to recognise the unique way student lettings work.

Unlike private rented housing, student lettings are often tied to the academic year and depend on shared responsibility among housemates.

Loc8me argues that wholesale changes will lead to confusion, increased disputes, and instability for both students and landlords.

Founder Raffaele Russo said: “We are still not even sure if the Act will affect students currently living in our properties, but we know it will have a major impact on those signing up now and in the coming months for next year.

“Many parts of the Act fail to account for the differences between private and student lettings.

“This is causing real worry for student tenants and our landlords, who we have a duty to protect.”

Two months notice

One major concern is a new rule allowing any tenant in a shared student house to end the joint tenancy with two months’ notice, a change Russo said removes the stability students have long depended on under fixed-term agreements.

“In most shared student houses, small disagreements are part of life and usually get resolved because everyone knows they’re committed until the end of the academic year,” he said.

“Now, a late-night argument could see one housemate serve notice and bring the whole tenancy to an end for everyone, leaving students with nowhere to live in a tight market.

“That doesn’t help students, landlords, or universities trying to manage accommodation.”

Selling up

loc8me also warned that the impact could reach beyond individual houses, as the changes could drive more landlords out of the student market, worsening an already tight supply.

Research from Savills earlier this year estimates the UK is short of more than 370,000 student beds, a gap that could grow if landlords leave the sector.

“When similar reforms were introduced in Scotland in 2017, many private landlords, particularly older owners, chose to sell up rather than take on the extra risk,” Russo said.

“We could see the same pattern here, which would push rents higher for the students left behind.”

Despite the uncertainty, loc8me says it is well prepared for the changes, as the company plans to roll out information sessions for student tenants ahead of the next academic year, explaining what the Act could mean for those signing new tenancy agreements.

“We are running daily training for staff and landlords,” Russo added.

“We are advising students to check their contracts and to seek independent advice where appropriate.

“But government clarity is essential. Without it, well-intentioned reform could produce damaging, avoidable side effects in the student market.”