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14/7/25 8:13 pm
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Rental arrears could climb across the student sector when the Renters’ Rights Bill is introduced, a student letting expert has warned.
The legislation, which is set to be signed into law in the next month or so, will prevent rent periods longer than one month, meaning clauses stipulating rent payments on an upfront, termly or quarterly basis — which are common in student tenancies — will be unenforceable.
According to student accommodation portal StuRents’ data, only 32% of students currently pay rent in monthly instalments; others pay either in termly instalments or the full tenancy upfront as many student property managers only offer these options.
The bill threatens to fundamentally disrupt the student HMO market, where the changes could have a significant knock-on effect on student letting behaviour, cashflow and student landlords deciding to leave the market, predicts Tom Walker, StuRents’ co-founder.
“Unsurprisingly, landlords have historically aligned rent payments with maintenance loan instalments that domestic students rely on to meet their rent payments, so changes to this status quo will undoubtedly impact students’ budgets and could see rental arrears climb across the student sector,” Walker tells LandlordZONE.
“Unfortunately for landlords, the bill also erodes protections for dealing with arrears, so it will definitely take time for the sector to adjust to new norms.”
While students could face increased difficulties with securing guarantors and adjusting to monthly rent payments, landlords are also likely to encounter increased costs due to changes in payment schedules.
The shift to periodic contracts could also disrupt the traditional student rental cycle: if a student leaves mid-year, it may be difficult to re-let the property until the next academic year. Additionally, landlords could become liable for council tax if a property remains vacant for three to four months.
Walker adds: “Many cite over-regulation and diminishing returns on investment as key reasons for selling up, which could significantly reduce the availability of student accommodation near campuses and intensify competition for the remaining stock.”
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