Renters' Rights Act 2025 reshapes PBSA

The Renters' Rights Act 2025 is now law, but it is still not clear exactly how it will impact the PBSA sector. Many provisions of the Act are not yet in force and there will be a staged implementation process, with most provisions being in force by 1 May 2026.

Outline of the new regime for PBSA

Under the Act, almost all ASTs will become assured periodic tenancies.  However new PBSA tenancies created after implementation of the relevant provisions will be exempt from the new assured tenancy system, as long as certain conditions are met.

Exempt tenancies will be common law tenancies covered by the Protection from Eviction Act 1977.  These will allow qualifying PBSA providers to continue to offer fixed term tenancies for the academic year.

The Act anticipates that tenancies will be exempt if:

• they are granted to full-time students at "specified educational institutions", (SEIs), and
• the landlord or its manager is subject to approved codes of practice (e.g the ANUK/Unipol National Codes).  

The regulations are expected to set out that tenancies in certain classes of building will be automatically exempt if the provider has signed up to a government approved code , reducing the administrative burden for providers.  

Details to be clarified – and potential pitfalls

Much of the detail of the regime is to follow in regulations - so the exact scope of the exemption is unclear.

One pitfall we anticipate is where a tenancy is exempt on grant of the tenancy, but the PBSA provider no longer satisfies the qualifying criteria by the time the tenant takes up occupation.  We expect the regulations to say that the tenancy would then automatically become an assured tenancy - with the landlord only able to end the tenancy under one of the statutory possession grounds.

Provisions where new tenancies are not exempt (and more pitfalls)

Landlords of student tenancies which are not exempt can use a new ground for possession (Ground 4A) if the property:

• qualifies as an HMO and 
• is let to full time students.  

However there are two more pitfalls:

• if an exempt PBSA provider grants a tenancy which fails the exclusion tests because the tenant is not a student at an SEI, the landlord will not be able to use Ground 4A (as the property is not a qualifying HMO).
• the landlord can only use Ground 4A if it has notified the tenant in writing before the tenancy is granted (or, if the assured tenancy is the result of a tenancy ceasing to be exempt, within 28 days of the "conversion" to an assured tenancy).

Existing tenancies – transitional regime

A different regime applies to existing student ASTs granted for the 2025/2026 academic year – these will automatically convert to assured periodic tenancies, but with temporary arrangements for existing "specified student tenancies".

A modified Ground 4A will apply to all "specified student tenancies" during the transitional phase, even if the property is not a HMO.  

Transitional regime pitfalls

As with new tenancies, we need to see the  supplemental regulations that will specify exactly how these transitional provisions will operate.

However, we already know of some practical issues which landlords may face under the transitional provisions:

• landlords must notify all tenants in writing within 28 days of conversion of existing PBSA tenancies under the Act that the modified Ground 4A will apply.
• once an existing PBSA tenancy has converted under the Act, tenants can serve 2 months' notice to quit at any point, leaving the landlord with unexpected voids.
• if tenants do not leave at the end of the academic year, landlords will need to take possession proceedings – with the risk of court delay.

Most students will not be aware of the Act, and it will be important for landlord to communicate clearly and promptly with tenants to avoid confusion.

Watch this space

The Act will create two completely new regimes -one for new tenancies, and one for existing tenancies. With less than 6 months before implementation landlords will need to get up to speed with all the forthcoming supplementary regulations so they are not left with tenancies they cannot terminate after 1 May 2026.