Is student housing under threat? Landlords warn of perfect storm
Introduction
According to the English Private Landlord Survey, around one in ten landlords let properties to students. Polling amongst NRLA members puts this slightly higher, at around 14%. While all landlords in England are contending with the Renters’ Reform Bill (RRB) and proposed Minimum Energy Efficiency Standards (MEES), these reforms create particular challenges for student landlords due to their reliance on academic cycles and summer turnaround periods.
Rigid rules, short timelines, and ongoing uncertainty risk reducing supply, driving up rents, and increasing reliance on costlier purpose-built student accommodation (PBSA). Drawing on NRLA survey data and landlord testimony, this blog explores the practical challenges and what would help the sector adjust.
What is changing and why it matters
(i) Changing tenancy agreements
The RRB proposes moving all assured shorthold tenancies to periodic assured agreements. Tenants would be able to leave with two months’ notice, while landlords would need to use statutory grounds to regain possession.
This fundamentally undermines the cyclical nature of the student market, which relies on fixed terms and predictable summer vacancies.
(ii) MEES (EPC) reforms
The current proposals - still awaiting confirmation - would require a minimum of EPC C for new tenancies from 2028, and for existing tenancies by 2030. Government expects landlords may need to spend up to £15,000 to reach this standard before the cost cap kicks in.
- However, NRLA research found that over half (55%) of landlords would be forced to sell if EPC upgrades exceeded £10,000 per property.
With student rentals typically running on annual cycles, the window for making significant upgrades is just one summer - 2027 - between academic years.
Open-ended tenancies disrupt annual planning
The NRLA’s Quarter 3 2024 consultation revealed that the removal of fixed-term tenancies was the top concern of student landlords in relation to the RRB. Separate survey data shows:
- Over three quarters (78%) of student landlords were extremely concerned about the removal of fixed-term tenancies, compared with 31% of non-student landlords.
Student landlords rely on predictable summer voids to complete essential maintenance and prepare for the next academic year. Landlords describe the anxiety this brings:
- “Open-ended tenancies don’t allow us to plan. It creates uncertainty for contractors, landlords, students. It’s going to be a nightmare for all of us.”
- “We’re contractually obliged to provide accommodation - but what if we can't get the work done in time?”
Ground 4a: a threat to small student lets
The Renters' Rights Bill includes Ground 4A – a new legal ground intended to allow student landlords to regain possession of properties at the end of an academic year. However, this ground does not cover all student lets and, despite attempts to amend the ground in the House of Lords, it is still only available for HMOs with three or more tenants.
This means landlords who let one- or two-bedroom properties can no longer guarantee possession during the summer months.
What landlords told us:
- “I’m too frightened to advertise the property for the next academic year until the current students move out. I could be in the position of having two sets of tenants.”
- “This one is a 2-bed flat in a very popular area for students and young professionals - it will probably end up in the young professional market”.
EPC C: a narrow window to upgrade
NRLA survey data shows that 58% of student landlords own at least one property rated EPC-D or below. Student landlords identified several barriers in upgrading property:
- Tight timelines: upgrades can’t happen during term time, leaving just a short summer window for major works.
- Unclear standards: the Government hasn’t published the final EPC methodology, leaving landlords unsure which improvements will count.
- Delayed eligibility: only work completed from late 2026 is expected to count towards the proposed cost cap - deterring early investment.
- Property type: a significant proportion of PRS stock, especially student HMOs, consists of pre-1919 buildings. These are often harder - and more expensive - to bring up to EPC C.
- Contractor shortages: high demand and limited time create concerns about finding qualified tradespeople when needed.
This uncertainty is already changing landlord behaviour. According to NRLA survey data, 74% of student landlords with properties below EPC C said they are considering selling one or more due to the MEES proposals – far higher than 45% across all landlords.
Landlords’ testimony highlights the depth of their frustration:
- “Students will not tolerate major works in term time. The only time this can happen is in the 4-week summer vacation. So, you combine the RRB with EPC bill and you have a disaster.”
- “Impossible to get them all done. Many of D level and there are not the tradesmen available to do the works. Also, very unsure what the legislation [and the time-frame] will be.”
- “I could have been doing work, but it’s not clear that any money spent now will count. Why spend twice?”
Market impact: a dampening appetite for the student market
Faced with overlapping policy pressures, many landlords are reviewing their position:
- “I'm in a wait-and-see situation… I’ve got properties I can just sell on as family homes.”
- “Would I grow the portfolio? No. I would look to invest my money somewhere else.”
- “Ultimately what will happen is rent will go up higher than what the market would have dictated.”
While developers point to purpose-built student accommodation (PBSA) as a fallback, landlords warn that it cannot meet full demand - nor match the affordability or flexibility of PRS housing:
- “The way student markets are being disregarded, the whole thing will come crashing down and students and universities will be in trouble. PBSA is far too expensive, and students want to have freedom to live in a house or flat with people they choose to live with.”
Shared PRS houses typically cost £2,000–3,000 less than PBSA accommodation. For students on tighter budgets, the traditional PRS remains the most cost-effective option.
A cautionary tale from Scotland
Scotland offers a cautionary tale for what can happen when reforms proceed without tailored measures for student housing – a risk now facing the English PRS. The number of PRS households shrank from 360,000 in 2016–17 to 320,000 in 2022. It has only partially recovered since. Around a quarter of students in Scotland rent in the PRS, a significant share.
Universities Scotland (2023) notes that tenancy reform has contributed to the decline in student HMOs, pushing more students into higher-cost PBSA and increasing pressure on supply.
- “We want to see action taken to encourage private landlords to re-enter the HMO market, which is often a more affordable option for students.” - Universities Scotland, 2023.
Scottish Government research also acknowledges a retreat of landlords from the student HMO market. If England follows a similar path without adapting reforms for student landlords, it could face the same result: reduced supply, rising rents, and fewer choices for students.
Landlords want to comply - but can’t do it alone
Despite the challenges, most landlords were clear: they support energy efficiency and tenant rights. But they need:
- Timelines that align with the student rental cycle.
- Targeted grant support, especially for hard-to-improve, older properties.
- Clarity and consistency in EPC standards.
- Extension of Ground 4a to one- and two-bedroom properties.
What landlords said:
- “We’re already installing insulation - and it’s making a difference. But it’s costly, and we need more time.”
- “It’s a great idea… but this isn’t the way to do it.”
Summary
Without adjustments to timelines, tenancy rules, and funding mechanisms, the UK risks a contraction in student housing availability -as has already happened in Scotland. Smaller landlords play a key role in affordable shared housing. Three quarters of student landlords with sub-EPC C properties are considering selling. If student landlords retreat, the unintended outcome could be fewer homes, higher rents, and greater reliance on expensive PBSA.
