Letting agents operating within the student accommodation market have warned that the Government’s plan to abolish fixed-term tenancy contracts will lead to a collapse of the traditional university housing market.

The 250 agents polled by lettings software giant Alto say housing minister Matthew Pennycook should ‘urgently rethink’ the measures within the Renters’ Reform Act that will usher in rolling, open-ended contracts for all tenancies but not exempt student accommodation.

A third of those polled believe this will ‘blow up’ the student rental sector while other reported landlords already pulling out of the student market.

Alto says there is clearly ‘deep unease’ among agent and landlords over the changes, which will end the traditional practice of students booking up their next year’s accommodation in advance and committing to move out once their final semester ends but often, in effect, paying for time in their homes that they don’t use.

Although the Government has given student landlords additional eviction powers within the reform bill to provide some certainty, agents are clearly worried that open-ended contracts will see students quit tenancies at short notice once the new tenancies are brought in, leading to considerable void periods.

Consequently, 20% of agents said landlords are already pulling out of the student market, another 10% said landlords are actively reconsidering and a further 10% have been advised their clients to ditch student lets altogether during the past year.

Predictability

“This is a sector built around predictability and the Renters’ Rights Bill rips that up,” said Riccardo Iannucci-Dawson, CEO at Alto (main image, inset).

“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.”

And while some students are turning to Purpose-Built Student Accommodation, agents warn it’s no substitute for the thousands of flexible, affordable HMOs provided by independent landlords.

To help agents navigate these challenges, 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.