Letting agents are raising the alarm over a looming crisis in the student rental sector, just weeks before the start of the new academic year. The concern comes as the Government moves forward with its Renters’ Rights Bill, which proposes scrapping fixed-term tenancies in favour of open-ended, rolling contracts.
According to new research from Alto, the CRM provider for estate agents, more than a third of agents (34%) fear the proposed changes could completely disrupt the student lettings cycle – a model long built around academic year timelines and fixed rental periods.
Polling 250 estate agents across the UK, the survey reveals growing unease about how the changes will affect the student market. Without fixed terms, agents warn that students may leave partway through the academic year, resulting in higher void periods and increased difficulties for landlords and letting agents trying to plan around term dates.
The report also suggests that landlords are already voting with their feet:
+ One in five agents (20%) say landlords have already exited the student market
+ 10% report landlords are actively reconsidering their involvement
+ A further 10% of agents say they have advised landlords to avoid student lets altogether in the past year
The findings point to a potential reduction in student housing availability just as demand continues to rise—particularly in university towns and cities where private rental accommodation plays a vital role in housing supply.
“This is a sector built around predictability and the Renters’ Rights Bill rips that up,” said Riccardo Iannucci-Dawson, CEO at Alto. “It’s not just landlords who lose. If student lets become unworkable, young people will have fewer affordable options and more uncertainty around their housing.”
Agents also warn that the reforms could unintentionally lead to rent increases, as landlords look to recover income lost to summer voids, meaning legislation brought in to protect tenants could actually cost them more.
Students, in particular, could be hit on both sides: many already face rising rents, and some don’t serve notice under rolling contracts, leaving them liable for extra costs.
The new academic intake begins in September, and agents are already grappling with early signs of trouble:
18% say landlords are bracing for summer voids that will gut income
15% say admin and advertising workloads are rising fast
12% say academic cycles no longer align with tenancies
11% warn it’s getting harder to re-let properties during off-peak months
And while some students are turning to Purpose-Built Student Accommodation (PBSA), agents warn it’s no substitute for the thousands of flexible, affordable HMOs provided by independent landlords.
To help agents navigate the storm, Alto has invested in automation tools that simplify compliance, custom workflows that adapt to tenancy changes, and faster marketing and applicant-matching tech to minimise costly gaps.
“We’re hearing the same thing from agents again and again: they want to support students and their clients, but they need a system that actually works,” said Iannucci-Dawson. “Without fixed-term tenancies, that balance is breaking.”
Alto is calling for the government to urgently revisit the Renters’ Rights Bill and introduce tailored provisions for student housing.
“Removing fixed terms risks fewer housing options, and rising prices – none of which help students”, added Iannucci-Dawson.
Offering a different perspective, the co-founder of property company The Depositary, said: “The student rental market is evolving and that’s not necessarily a bad thing. Yes, scrapping fixed terms may create short-term uncertainty, but it also forces a long-overdue rethink.
“Historically, students have been locked into 12-month contracts for 10-month tenancies, and often pay for voids they don’t use. In the new system, some landlords may push rents up to recover those gaps, but others will see opportunity.
“Short-term summer lets could boost yields, and improving the quality of student accommodation will become key. The smart investors will realise that better homes attract loyalty – and if a student loves where they live, they’ll want to stay. Moving is expensive, disruptive and stressful – most won’t jump ship without good reason.”
Read the orginal article: https://propertyindustryeye.com/letting-agents-concerned-about-collapse-of-academic-rental-cycle/
