LODGE: A Living Sector Update - Summer 2025

Renters’ Rights Bill and PBSAs: Where are we now?

By Laura Bushaway and Lauren Fraser

When the Renters’ Rights Bill was first published in Parliament back in September 2024, the Government’s explanatory notes suggested that Purpose-Built Student Accommodation (“PBSA”) was to be exempt from the changes to be implemented by the Bill provided that the providers were registered for Government-approved codes of practice.

However, those provisions did not actually appear in the Bill itself and the Housing Act 1988 only excludes tenancies granted by a specified educational institution to students in full time education from the assured shorthold tenancy/assured tenancy regime. There are many private PBSA providers which would not fall into the category of being a specified educational institution so not within that exemption. The Bill did contain provisions that where a property is a House in Multiple Occupation (“HMO”), a new ground for possession (Ground 4A) would be available to allow a landlord to recover possession of a property let to full-time students at the end of the academic year so that it could be relet to students for the next academic year. This ground is conditional on landlords giving tenants written notice, within 28 days of the commencement date of the Bill, if the landlord wanted to be able to recover possession on the basis that the tenant met the student test and the landlord intended to let to students. HMO properties are those where 3 or more people live together sharing facilities but are not a family unit. Some PBSA accommodation can also be a HMO but some will also fall outside the definition of a HMO. During the Committee phase in the House of Lords on 22 April 2025, during a line-by-line examination of the Bill, student accommodation was debated.

Baroness Taylor of Stevenage, on behalf of the Government, stated during that debate that:

Currently, university-managed accommodation is exempt from the assured tenancy system, while private purpose-built student accommodation usually is not. Government Amendments 47, 188 and 202 would allow private PBSA to be subject to the same exemption, recognising that the two share many similarities. Students do not move into their accommodation expecting long-term residence, and it is right to ensure that this accommodation is available to new cohorts of students each year.”

She went onto confirm that the exemption will only apply to private PBSA accommodation that is a member of the Government-approved code of practice. In addition, the Government intends to amend the definition of HMOs in the Housing Act 2004 so that educational establishments exempt from HMO licensing can be specified by reference to code membership or to a certain group of buildings within the membership. Those amendments appear in the current draft of the Bill. They confirm that Regulations can be made to specify a class of building or a body of members of a Government-code which do not fall within the assured tenancy regime or fall outside of the HMO regime. Crucially, they confirm that the question of whether or not a tenancy falls within the exemption is to be determined by reference to the date when the tenancy is granted, except if certain conditions are met. However, because these amendments are subject to secondary legislation being drafted, the detail behind them is not currently available to confirm exactly how these provisions will operate including how the conditions are to be met if there is a change to the position after the tenancy is granted. So, there remains some level of uncertainty for the PBSA sector.

In addition, the new ground of possession (Ground 4A), referred to above, enabling landlords to seek possession of an HMO has been altered to remove the reference to an HMO. A landlord can seek possession under Ground 4A where a property is let to students whether or not it is a HMO. It is important that any landlord wishing to rely on that ground once the Bill is in force serves written notice on the tenant within 28 days of the date that the tenancy converts to an assured periodic tenancy if the landlord wishes to be able to recover possession on the basis that the tenant is a full-time student and the landlord intends to let the premises in the future to other full time students. PBSA providers will remain key observers of the Bill as it concludes its passage through Parliament and will also be monitoring publication of the secondary legislation which gives effect to the Government’s proposals in relation to PBSA accommodation. Until those Regulations are available, there remains a level of uncertainty about the impact of the Bill on PBSA providers.

She went onto confirm that the exemption will only apply to private PBSA accommodation that is a member of the Government-approved code of practice. In addition, the Government intends to amend the definition of HMOs in the Housing Act 2004 so that educational establishments exempt from HMO licensing can be specified by reference to code membership or to a certain group of buildings within the membership. Those amendments appear in the current draft of the Bill. They confirm that Regulations can be made to specify a class of building or a body of members of a Government-code which do not fall within the assured tenancy regime or fall outside of the HMO regime. Crucially, they confirm that the question of whether or not a tenancy falls within the exemption is to be determined by reference to the date when the tenancy is granted, except if certain conditions are met. However, because these amendments are subject to secondary legislation being drafted, the detail behind them is not currently available to confirm exactly how these provisions will operate including how the conditions are to be met if there is a change to the position after the tenancy is granted. So, there remains some level of uncertainty for the PBSA sector.

In addition, the new ground of possession (Ground 4A), referred to above, enabling landlords to seek possession of an HMO has been altered to remove the reference to an HMO. A landlord can seek possession under Ground 4A where a property is let to students whether or not it is a HMO. It is important that any landlord wishing to rely on that ground once the Bill is in force serves written notice on the tenant within 28 days of the date that the tenancy converts to an assured periodic tenancy if the landlord wishes to be able to recover possession on the basis that the tenant is a full-time student and the landlord intends to let the premises in the future to other full time students. PBSA providers will remain key observers of the Bill as it concludes its passage through Parliament and will also be monitoring publication of the secondary legislation which gives effect to the Government’s proposals in relation to PBSA accommodation. Until those Regulations are available, there remains a level of uncertainty about the impact of the Bill on PBSA providers.

We are tracking developments on our Essential Residential Hub and our timeline: Evolution of the private rented sector. This insight has been prepared as a general guide only and does not constitute advice on any specific circumstances. Please seek advice on your specific circumstances.

Renters’ Rights Bill and PBSAs: Where are we now?

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