Renters’ Rights Bill House of Lords update - March 2025

The Renters’ Rights Bill is continuing its progress through Parliament, with the House of Lords now scrutinising key amendments. As the Bill edges closer to becoming law, student accommodation providers must prepare for significant changes - particularly regarding tenancy structures, rent payments, and early letting restrictions.



With Royal Assent expected by summer this year, stakeholders in student rentals need to assess how these reforms will impact both upcoming and already signed tenancies. Here’s what you need to know about the latest updates.

Key takeaways from the House of Lords report stage

The Report Stage in the House of Lords introduced several important clarifications and restrictions that will impact student tenancies in HMOs and off-street housing.

Rent payment limits remain in place

Students will only be allowed to pay one month’s rent in advance, aligning with broader PRS changes. This disrupts termly and upfront payment structures, which are standard in student rentals. Landlords will no longer be able to require tenants to pay rent upfront in lieu of a guarantor. While some international students previously opted to pay a year’s rent in advance, they must now either secure a UK guarantor or explore commercial guarantor options if a landlord requires additional financial security.

What this means:

A greater reliance on guarantors - and likely tighter credit checks for students. Some landlords may increase deposit sizes (within the legal cap) to mitigate non-payment risks. Letting agents may need to offer alternative rent guarantee solutions for international tenants.

Restrictions on early lettings

Landlords cannot use the student possession ground (4A) if the tenancy was entered into more than six months in advance. The aim is to reduce pressure on students to commit too early, but early signings are not outright banned. This could shift peak letting season later, potentially making marketing cycles more unpredictable.

What this means:

Student landlords should review tenancy start dates carefully to avoid possession disputes. Delays in house-hunting may impact cash flow and occupancy planning. The biggest impact will be on high-demand student markets, where properties often let 9–12 months in advance.

Clarification on PBSA exemptions

Most PBSA providers signed up to a government-approved code will be exempt from some tenancy reforms, such as the shift to periodic tenancies. However, the one-month rent limit applies across the board via the Tenant Fees Act, meaning PBSA cannot require more than one month’s rent in advance. That said, upfront rent collection is less common in PBSA until tenancy agreements are fully signed.

What this means:

PBSA providers can continue offering fixed-term contracts, maintaining stability in that sector. HMO landlords will face tighter restrictions, potentially giving PBSA a competitive advantage.

Three-month rent arrears rule introduced

The threshold for eviction due to rent arrears will increase from two months to three months. This means landlords may have to wait longer before initiating eviction proceedings for non-paying tenants. 

What this means:

Property managers must be prepared for longer arrears periods before taking legal action. Cash flow forecasting will be critical to absorb any delays in rent payments. Guarantors may become even more essential, increasing pressure on students to secure one.

Impact on tenancies already signed for 2025/26

With the Bill expected to become law by the summer, any tenancy agreements signed now will automatically convert to periodic tenancies once the law takes effect.

• Landlords who have already signed fixed-term student lets for 2025/26 will need to adapt - as those agreements will transition into periodic tenancies overnight.
• Tenants will have the right to serve two months’ notice at any time, even if they signed a 12-month tenancy before the law passed.
• This could disrupt occupancy planning, especially for landlords with high churn rates and term-time rental cycles.

What’s Next? 

The Committee Stage is currently underway, and while some minor amendments may still be introduced, Labour remains firm on its commitment to fast-track implementation.

The Renters’ Rights Bill update signals a major transformation in student housing, with new rules on tenancy structures, payment limits, and repossession rights. While PBSA providers have secured key exemptions, HMO landlords will need to rethink how they manage risk, occupancy, and rental cycles under the new law. With Royal Assent expected this summer, now is the time to review tenancy agreements, reassess financial planning, and prepare for a new regulatory landscape.