Letting agents are warning of chaos in the student rental sector as the Government pushes ahead with reforms that will scrap fixed-term tenancy agreements, just weeks before the start of the new academic year.
The Renters’ Rights Bill, due to come into force later this year, will replace fixed terms with indefinite rolling contracts – a change that more than a third of agents (34%) fear could collapse the traditional student letting cycle altogether.
New data from Alto, the UK’s largest estate agency CRM provider, shows deep unease across the sector.
In a poll of 250 agents, one in five (20%) said landlords had already quit the student market in anticipation of the reforms, while a further 10% said their clients were actively reconsidering their position. Another 10% of agents admitted advising landlords to leave the student sector altogether in the past year.
MID-TERM VOIDS
Riccardo Iannucci-Dawson, Chief Executive of Alto, says: “This is a sector built around predictability and the Renters’ Rights Bill rips that up. 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 warn that scrapping fixed-term contracts could create mid-term voids and leave landlords unable to plan around the academic calendar. Rising costs are also expected.
Nearly one in five (18%) agents said landlords were already bracing for income losses over the summer months, while 15% reported rising administrative workloads, 12% said academic cycles no longer aligned with tenancy patterns, and 11% highlighted difficulties re-letting properties during off-peak months.
OPEN-ENDED AGREEMENTS WARNING
There are also concerns that students themselves could be left worse off. Under open-ended agreements, those who do not serve notice may face liability for rent well beyond their intended stay. At the same time, landlords may seek to raise rents to cover income lost during void periods.
“Removing fixed terms risks fewer housing options, and rising prices – none of which help students,” Iannucci-Dawson adds.
While some students are turning to purpose-built accommodation, agents say this cannot replace the thousands of affordable houses in multiple occupation (HMOs) traditionally provided by private landlords.
TECH UPGRADE
Alto said it was responding to the changes by upgrading its technology to help agents manage compliance, automate rolling contracts and minimise costly voids. The company’s platform, already used by 33,000 agents, integrates marketing, rent reviews and applicant matching.
Iannucci-Dawson says: “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. Without fixed-term tenancies, that balance is breaking.”
CHANGE LONG OVERDUE
However, others argue the reforms could modernise a market long overdue for change.
Kristjan Byfield, co-founder of The Depositary, says: “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.”
Alto has urged ministers to revisit the legislation and introduce specific provisions for the student housing sector.
