Nearly half (45%) of student landlords plan to market their properties later, following the introduction of the Renters' Rights Act, according to new research from student property platform, Accommodation for Students, based on a sample representing approximately 7,400 student properties.
The findings suggest the long-established student lettings cycle, which has traditionally seen landlords market properties as early as October and November for the following academic year, could be set for one of its biggest changes in decades.
The shift is being driven by the introduction of Ground 4A, the new student possession ground, which means landlords wishing to rely on it cannot sign tenancy agreements more than six months before the tenancy begins. Marketing student accommodation almost a year in advance has traditionally given landlords confidence that properties would be let before the start of the academic year.
However, those wishing to rely on Ground 4A are now having to reconsider when they market properties and enter into tenancy agreements in order to retain access to the new possession ground.
Almost three-quarters (73%) of landlords intend to use Ground 4A, the survey found, while 65% were aware that signing tenancy agreements too far in advance could affect their ability to rely on it.
Some landlords are expected to delay marketing altogether. Others are likely to continue advertising properties during the traditional autumn period but postpone signing tenancy agreements until they fall within the six-month window.
This creates practical challenges for landlords and letting agents, however. Holding deposit rules mean landlords cannot simply reserve properties indefinitely before a tenancy agreement is signed, creating a gap between identifying prospective tenants and entering into a legally compliant tenancy.
Simon Thompson, director and founder of Accommodation for Students, said the market is adjusting to the new legislation. "The student lettings market has operated in broadly the same way for many years, with landlords traditionally marketing properties almost a year before students move in," he said.
"Our research suggests many landlords are now reviewing that approach as they adapt to the new legislation. While the traditional autumn lettings season is not going to disappear overnight, we could see more properties coming onto the market later than the sector has been used to."
October and November are likely to remain important months for student property searches, the findings suggest, though more accommodation could become available later in the academic year as landlords adjust their marketing strategies.
While this may ease some of the pressure on students to secure accommodation immediately after starting university, it also highlights the need for the sector to develop new ways of providing certainty for both landlords and students without falling foul of the new legislation.
To address this, Accommodation for Students will shortly launch a pre-let agreement solution designed to let landlords and students commit to a property before the tenancy agreement is signed, while remaining compliant with the legislation.
"The challenge for the sector is balancing compliance with the practical realities of the student market," Thompson added.
"Landlords still want certainty that properties are let ahead of the academic year, while students also want reassurance that their accommodation is secured. Our pre-let agreement solution is designed to help bridge that gap, giving both parties greater confidence while ensuring the tenancy itself is entered into at the appropriate time under the new legislation."
Accommodation for Students believes the traditional October and November student lettings rush is unlikely to disappear overnight. However, the research points to the first significant shift in landlord marketing behaviour following the introduction of the Renters' Rights Act, with further changes expected as the sector adapts.
