Renters' Rights Act 2025: PBSA exemptions and the ANUK Code

The Renters' Rights Act (RRA) introduces significant reforms to the residential rental market, with specific exemptions for Purpose-Built Student Accommodation (PBSA). The assured periodic tenancy regime, which is the main part of the RRA relevant to the PBSA exemptions, will be brought into force on 1 May 2026.

The following focuses on the private PBSA market (rather than the provisions that will apply to universities for the so-called "halls of residence" style accommodation).

The RRA sets out the framework for the PBSA exemption and some tweaks have been made to relevant secondary legislation. We are not expecting any further regulations in relation to PBSA ahead of 1 May 2026.

Key Exemptions for PBSA

• Exemption from the new assured tenancy regime:
  • Exempt PBSA tenancies will not be classified as assured tenancies, shielding them from many of the RRA's reforms.
  • This exemption is contingent on meeting specific criteria, including the "student test" and either the "landlord test" or "manager test".
• Exemption from classification as Houses in Multiple Occupation (HMOs):
  PBSA properties will not be classified as HMOs if they meet the defined criteria, distinguishing them from other residential rental properties.

What are the criteria for the exemptions for private PBSA operators?

• The most important criteria for both exemptions is having a manager that is a member of a "housing management code" (eg ANUK).
• There are other more technical criteria, including requirements linked to the status of the student occupier, which are different between the two exemptions eg in relation to the HMO exemption the student tenants will need to be full-time students (careful attention will need to be paid to this).

What are some of the key operational considerations for PBSA owners?

• Membership of a Housing Management Code
  PBSA owners must ensure they or their appointed managers maintain membership in a recognised housing management code (i.e. ANUK). Loss of membership could disqualify properties from exemptions.
• Tenancy agreements
  • Existing assured shorthold tenancy (AST) templates will need to be replaced with new common law agreements that comply with the ANUK code where the PBSA exemption applies.
  • If the PBSA exemption does not apply, tenancy agreements must align with the assured periodic tenancy (APT) regime (see further below).
• Transitional considerations
  Careful consideration should be given in relation to terminating existing tenancies for the current academic year (2025/2026), such as serving s.21 notices, and complying with statutory requirements such as the provision of the Renters' Rights Act Information Sheet for tenants of existing ASTs. We cover this in more detail in our briefing note (please see below for details).
• Future regulations
  The RRA allows for secondary legislation to refine or alter the exemption criteria, potentially impacting PBSA operations. Owners should monitor regulatory developments closely.

What kind of tenancy will an exempt PBSA owner be able to grant?

Exempt PBSA tenancies can be "common law tenancies" which means, crucially, that:

• They can be for a fixed term, with no right for the student tenant to terminate on 2 months' notice.
• There is no restriction on collecting rent in advance (so rents can be collected for the full term or academic year for example).
• Most of the rest of the Renters' Rights Act regime will not apply₁.

However, as with any residential occupier, if the person in occupation refuses to vacate (eg at the end of the fixed term), the landlord should still obtain a court order to regain possession.

What are the implications for non-exempt PBSA tenancies?

Non-exempt PBSA tenancies will be subject to the assured periodic tenancy regime, with stricter rules on tenancy terms and grounds for possession, and the ability for tenants to terminate on two months' notice. Rent cannot be collected more than 1 month at a time. Those properties/landlords will also be subject to the other controls being implemented for the wider PRS market (eg ban on rental bidding, the ban on fixed terms, Awaab's law etc.). Owners may face challenges in regaining possession of properties in time for the next academic year if tenants refuse to vacate.

Has the ANUK code been updated in light of the RRA coming into force?

Yes, a new government approved Code was published on 27 February 2026. There are material updates compared to the previous 2022 code. We cover this in more detail in our briefing note.

Conclusion

The RRA introduces significant changes to the rental market, but the PBSA exemptions provide critical protections for student accommodation providers. PBSA owners and operators must ensure compliance with the exemption criteria, maintain housing code memberships, and prepare for potential regulatory changes. Proactive planning and monitoring of legislative developments will be essential to mitigate risks and ensure operational continuity.

Would you like to find out more?

If you are interested in this topic and would like to find out more, we have a briefing note looking at the PBSA exemptions in more detail, including transitional provisions. This can be made available on request. Please contact John Kelsey to find out more.

_{1 Rent Repayment Orders for HMO/license breaches will continue to apply – with the increase to 2 years that the RRA brings in. The Tenant Fees Act also continues to apply.}