The Intermediary – August 2026 - Flipbook - Page 34
BUY-TO-LET
Opinion
The Renters’ Rights Act:
Reshaping student
buy-to-let
he Renters’ Rights
Act (RRA) brought in
significant changes for
landlords, but one of
the earliest areas where
we are beginning to see
real behavioural change is within the
student leings market.
For many years, the student rental
cycle had been highly predictable.
Properties were oen marketed almost
a year in advance, tenants commied
early, and many landlords benefited
from 12-month tenancy agreements
which provided rental income
throughout the summer months, even
when students had returned home.
As a result of the RRA, that model is
now changing.
Since the legislation came into
force, there is evidence that many
students are exercising their greater
flexibility by serving notice as soon as
their academic year comes to an end,
rather than remaining liable for rent
throughout the summer.
The reason behind this change is
straightforward. Students are no
longer required to remain in, or
continue paying for, accommodation
once they no longer need it. For
landlords who have traditionally
relied upon a full year’s rental
income from student properties, this
represents a significant change to
long-established assumptions.
At the same time, new research
from Accommodation for Students
suggests that 45% of student landlords
intend to market their properties later
than they have done traditionally,
while almost three-quarters expect
to rely on the new Ground 4A
possession, which limits how early
tenancy agreements can be signed
before the start of the academic year.
Taken together, these developments
suggest the student leing market is
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The Intermediary | August 2026
entering a period of adjustment that
advisers may need to discuss with
landlord clients.
Cashflow and yields
For landlords whose business model
has been built around consistent
12-month rental income, the
potential implications are significant.
Where students leave shortly aer
completing their studies, landlords
could now experience void periods
lasting several months before the next
academic intake arrives.
Even if those properties are
eventually re-let at similar monthly
rents, the annual income generated
could be lower than many financial
projections have previously assumed.
This introduces greater volatility
into occupancy paerns and cashflow,
particularly for landlords whose
investment calculations have relied
on year-round occupancy. For some,
that could have a material impact
Some [student
landlords] may continue
to specialise in student
accommodation but build
different assumptions into
their business planning,
recognising higher
headline yields may now
need to offset longer
anticipated void periods”
LOUISA RITCHIE
is national account manager
at Fleet Mortgages
on overall yields and the long-term
viability of certain investments.
This does not mean student
property suddenly becomes an
unaractive investment, because
demand from students remains
exceptionally strong across many
university towns and cities.
However, it does mean landlords
may need to think differently about
how they assess returns, manage
cashflow and structure borrowing.
For advisers, this reinforces
the importance of looking
beyond headline rental yields and
understanding how income is likely
to be received across the entire year.
A property producing an aractive
monthly rent may still create
funding pressures if there are longer
void periods.
Marketing strategies
The research also points towards
another shi that could alter the
rhythm of the student market.
Historically, landlords have oen
marketed properties during October
and November for the following
