Letting agents warned of a crisis in the student rental market as the Government pressed ahead with the Renters’ Rights Bill, which scrapped fixed-term tenancies for open-ended rolling contracts.
Research from Alto found that 34% of agents believed the changes could disrupt the student letting cycle.
Agents said students could leave mid-term, causing more voids and making academic year planning difficult.
20% of agents said landlords had already pulled out of the student market, while another 10% said landlords were reconsidering their position.
Another 10% said they had advised clients to stop student lets in the past year.
Riccardo Iannucci-Dawson, CEO at Alto, said: “This is a sector built around predictability and the Renters’ Rights Bill rips that up.
“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 said the reforms could have led to rent increases, as landlords looked to cover income lost during summer voids.
Some students also faced extra costs if they did not serve notice under rolling contracts.
With the new academic year starting in September, agents reported early signs of trouble.
18% said landlords were bracing for summer voids, 15% said admin and advertising workloads had risen, 12% said academic cycles no longer matched tenancies and 11% said it was harder to re-let properties during off-peak months.
Some students turned to purpose-built student accommodation, but agents said it was no replacement for the thousands of HMOs provided by independent landlords.
To help agents manage, Alto said it had invested in automation tools for compliance and void management.
Iannucci-Dawson added: “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.
“Without fixed-term tenancies, that balance is breaking.”
“Removing fixed terms risks fewer housing options, and rising prices – none of which help students.”
Kristjan Byfield, 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.”
Byfield added: “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.”
