The affordability and supply crisis gripping the UK student accommodation sector is set to be dramatically worsened by the Renters’ Rights Bill (RRB), which is expected to force many private student landlords out of the market.

A new report from real estate firm Cushman & Wakefield reveals the extent of the current strain:

• Supply Shortfall: New supply has collapsed, with annual delivery of purpose-built student accommodation (PBSA) beds having nearly halved over the last five years. Even with modest demand growth, an estimated 750,000 students could be left without a PBSA bed, resulting in a national student-to-bed ratio of 1.9 to 1.
• Affordability Crisis: A record 23% of student beds in England now cost more than the maximum Maintenance Loan, forcing more students to commute or live at home. This push for affordability has also seen university rental growth outpace the private sector for the first time in seven years.
• Market Disruption: Falling postgraduate numbers and high costs are causing distress in some areas, such as Sheffield, which has seen PBSA rents drop by 5.5% as providers compete for a shrinking pool of affluent tenants, signalling that students are intensely balancing lifestyle and value-for-money.

The Fatal Flaw for Private Student Landlords

The primary threat posed by the RRB is the abolition of fixed-term tenancies in the private rented sector.

The traditional student letting model—where a landlord secures a guaranteed 12-month income block aligned with the academic year—will be replaced by rolling, periodic tenancies. Under the new rules, a student can serve just two months’ notice to leave at any time.

For private landlords, particularly those running smaller student houses and flats, this creates an existential risk:

• Unforeseeable Voids: Losing a tenant in March or April means the property will likely remain empty for months, as a replacement cannot be secured until the next academic cycle in September. This shift from predictable annual voids to year-round “micro-voids” destroys the financial viability of student HMOs.
• Uneven Playing Field: University accommodation and larger, accredited PBSA providers are exempt from this change and can continue to offer fixed-term contracts, giving them a massive competitive advantage.

While the RRB introduces a new Ground 4A to allow landlords of larger student HMOs (three or more bedrooms) to reclaim possession for the new academic year, many smaller properties that house postgraduates and international students lack this crucial protection.

The increased risk and uncertainty will incentivize private landlords to exit the student housing market entirely, further reducing overall supply and driving up rents for the accommodation that remains.