Updated July 2026 for the Renters’ Rights Act. Renting to students is still a strong market — but the rules changed on 1 May 2026. Fixed-term contracts are gone, tenants can leave on two months’ notice, and you can no longer take a term’s rent up front. This guide covers how student lets work now, the special student possession ground that protects the annual cycle, and how to reference and protect a student tenancy.
Key takeaways
- No fixed terms. Student tenancies are now periodic and open-ended like any other assured tenancy.
- Rent in advance is capped at one month — the old “pay the year/term up front” model is no longer allowed.
- Ground 4A lets landlords of full-time-student HMOs regain possession to re-let for the new academic year.
- Guarantors are still allowed and remain important for students with little income.
- Most shared student houses are HMOs and may need a licence.
How student lets work now
Because fixed terms are abolished, you cannot tie a student in for a 12-month academic year. The tenancy runs as a periodic assured tenancy, and a student can end it on two months’ notice. In practice most students still stay for the academic year, but the flexibility now sits with them. Rent-in-advance is capped at one month, so you can no longer ask a parent to pay a full year or term up front — plan your cash flow and referencing around that.
Ground 4A: keeping the academic cycle
To protect the student market, the Renters’ Rights Act introduced Ground 4A. It lets landlords who let an HMO to full-time students recover possession so the property can be re-let to a new group for the next academic year. This means a typical student HMO can still turn over each summer, provided you follow the notice requirements. It applies to student HMOs — not single lets to a lone student — so check your set-up.
Referencing and guarantors
Students rarely have earnings to reference, so a UK-based guarantor (often a parent) is standard. Reference the guarantor properly and put the guarantee in writing. Remember you cannot operate a blanket ban on tenants receiving benefits or with children, and you cannot run a bidding war on the rent.
HMO licensing and safety
A shared student house is usually a House in Multiple Occupation (HMO) and may need a mandatory or additional licence. Keep on top of the same safety duties as any let: an annual gas safety check, a valid EICR, smoke and carbon monoxide alarms, and deposit protection.
Frequently asked questions
Can I still use a fixed-term student contract?
No. Since 1 May 2026 fixed terms are abolished; student tenancies are periodic. Ground 4A lets you recover a student HMO for the next academic year.
Can I ask for a year’s rent in advance from students?
No. Rent in advance is capped at one month. Use a guarantor instead of large upfront payments.
Do I still need a guarantor?
Guarantors are still permitted and remain the usual way to cover students with little income — just reference them and document the guarantee.
Written by the Landlords Portal team — experienced UK landlords covering the private rented sector. This article is general information, not legal advice.
