Section 21 of the Housing Act 1988 currently allows for tenants to be evicted, with no need for their landlord to stipulate any grounds. The new Bill intends not only to abolish this, but apply retrospectively, with transitional provisions put in place for cases where section 21 notices were served prior to the commencement date of the Bill. 

This will essentially eliminate Assured Shorthold Tenancies in the form they currently operate.

The Bill introduces new grounds for possession, one of which will allow the landlord of an HMO to recover possession at the end of an academic year, in order to relet to students for the ensuing year, on the condition that written notice is given within one month of the commencement date. As it currently stands, for properties that are not HMOs, the Bill does not provide for the unique nature of the academic year and the equally unique structure of student accommodation. If this isn’t sufficiently addressed, it is possible (and perhaps even probable) that we will see a sizable decline in the student housing market as a consequence. 

The primary concern here is the private developers and landowners who enter into arrangements with the relevant university and local authority to provide units of student accommodation and affordable student accommodation (tenancies granted by an educational institution will not be impacted). These landlords have routinely relied on serving no fault notices to regain possession of properties at the end of an academic year. The Bill will prevent landlords from doing so unless there is a breach of the terms of the tenancy, or the tenant has caused nuisance or a criminal offence. 

The Bill also proposes that all tenancies with a term of less than seven years will be periodic tenancies, with a rent payment period of no longer than one month. As with the abolition of no fault evictions, this will also apply retrospectively. Under these periodic tenancies, tenants will be permitted to terminate their lease by giving two months’ written notice and be entitled to a refund for any rent paid in advance for the period following the termination date. 

By removing fixed term ASTs, the Bill would technically allow a student tenant to serve two months’ notice to vacate a property at any point during the academic year. Finding new student tenants to occupy the now vacant property would be particularly challenging due to the fixed nature of an academic year, and tenancy providers could be forced to wait until the beginning of the next academic year to do so, leading to void periods. 

The explanatory notes to the Bill do consider the possibility of exemption for certain purpose built student accommodation, and it is widely anticipated that later regulations will explore this in more detail, but, nonetheless, there is concern about the impact on PBSA.

Housing Minister Matthew Pennycook hopes that the Renters’ Rights Bill will be in place by summer 2025 and we will be watching its impact on the PBSA market closely. 

1. New grounds: these will be available to a landlord seeking to regain possession, including if possession is necessary to comply with enforcement action or where the property is held by the landlord under a superior lease with a term due to expire.
2. Notice periods: landlords currently need to provide two months’ notice in most cases. This will increase to four months. In the case of rent arrears, this ground cannot be exercised without three months’ rent being overdue (previously two months), giving four weeks’ notice (previously two weeks).
3. Rent increases: irrespective of the rent review clause in the lease, increases will be limited to once a year and capped at the open market rent. Landlords must follow a prescribed procedure, serving notice of the intended increase, and tenants may challenge this.
4. Anti-discrimination: discrimination based on a prospective tenant having children or receiving benefits will be prohibited under the Bill and it is anticipated this protection will be extended to other groups of renters at a later date.
5. Protected period: tenants will be entitled to receive specific protection from eviction during the first year of a new tenancy.