Upcoming changes to legislation will have a significant impact on PBSA landlords and their student tenants. The Director of Standards at Unipol, Victoria Tolmie-Loverseed, considers how Members need to prepare.

2026 will be a big year for the PBSA sector, with the main provisions of the Renters’ Rights Act coming into force on 1st May 2026. The focus of this Member update is on:

• Preparing for the year ahead

• Getting the right advice

• Raising awareness of how the National Codes can help, and situations where it cannot

Recent exchanges I’ve had with some Members have highlighted to me that there are still areas of uncertainty and confusion around what the Act means for PBSA, and the next five months is therefore a critical time opportunity for Members, and those applying for membership, to get up to speed with the changes and prepare.

There is no avoiding the complexity of some of the issues, particularly during the transitional period, and unfortunately most of the generic legal briefings on the Renters’ Rights Act (the Act), even those that deal specifically with the student market, will not explore the PBSA exemption in any depth.

The practical challenge for Members to address is that tenancies for the 2026 – 2027 academic year that are granted before 1st May 2026 will convert to assured tenancies on that date. This means the much-anticipated PBSA exemption will come into effect in a phased way for most Members through to 2027 – 20208, creating a transitional year to manage. If they have not already done so, Members must take advice and start preparing now or potentially face costly mistakes and tenant challenges.

Unfortunately, there are no quick or easy answers here, but hopefully this article will provide clarity around certain issues and point Members in the direction of steps they should be taking now.

Can the National Codes provide legal advice on how to adapt and prepare for the Renters Rights Act and exemption?

In short, no. The National Codes have received several questions from Members seeking advice on their tenancy agreements and how to respond to transitioning to the Act. The National Codes cannot provide legal advice to Members or students, nor can we provide specific guidance to cover every eventuality in relation to the Act.

Where appropriate we will provide high level guidance and pointers on the legal issues to consider or provide access to webinars or briefings from legal experts who can provide more detailed analysis. However, no guidance can capture the variety of individual contractual arrangements or circumstances that may arise.

We will shortly be providing some guidance on exactly how the exemption operates in the Act, including links to the legislation. The Government will also be publishing a Statutory Instrument in early Spring that will detail how the PBSA exemption will operate in relation to the Act. However there is no need for Members to wait for this before undertaking their preparations, as it will only be setting out the regulatory mechanism for exemption, and will not alter the basic principles regarding tenure that Members are already aware of.

It is really important that Members seek appropriate, detailed legal advice about their individual arrangements now if they have not already done so, covering how to deal with the transition and beyond as it will apply to them. The PBSA exemption and the transitional period are specialist areas of housing law, and you may find you need to direct your legal advisor to the relevant pages on the National Codes new pages to ask for tailored advice:

The Renters’ Rights Act: The Transitional Phase The Renters’ Rights Act:

How will Members of the Code be treated under the Renters’ Rights Act?

Organisations that do not prepare adequately may find they have opened themselves up to unnecessary risk, non-compliance with new elements of the Act, and legal challenge by tenants.

The National Code will continue to provide guidance and information on how Members can comply with the requirements of the Codes, and in the coming weeks further detail will be provided on some governance changes to the Audit Panel and membership criteria.

What should PBSA providers be considering now to get Renters’ Rights Act ready?

There are three areas that Members should be preparing for now:

1. Contractual Issues – Preparation and Transition to Common Law Tenancies

Recap on the main changes in the Act

We now know that the main changes to tenure in the Act will be introduced on 1st May 2026, and from that date onwards:

• The abolition of assured shorthold tenancies and section 21 notices will mean that fixed term tenancies are no longer possible, and instead all tenancies will become assured tenancies.

• The Government has granted a special PBSA exemption for certain qualifying tenancy agreements, meaning that they are outside of the assured tenancy regime:

• The letting is to a student who intends to or is currently studying

• The student is studying at a specified educational institution

• The tenancy is granted by an organisation that is a member of the ANUK/Unipol National Code for Non-Educational Providers

• The organisation must control and manage the building

If you are a member of the National Code and your tenancies meet the above criteria, from 1st May 2026 onwards any new tenancies issued will be common law tenancies and the assured tenancy regime will not apply, conferring significant benefits on Members. The details of this can be found in the Act here.

Beyond this straightforward statement, there are a number of transitional issues that Members need to be aware of and adapt for. The date of 1st of May presents some operational challenges for PBSA operators, with many tenancy agreements for the 2026 – 2027 year already entered into. The National Codes has provided guidance on how to approach this transitional year which Members may find it helpful to review.

What is a common law tenancy?

A common law tenancy is based on the agreement between the landlord and tenant and is not protected by tenancy law such as the Renters’ Rights Act. PBSA providers should take legal advice to assist them with creating new agreements for use for tenancies that are entered into after 1st May.

Can I use a common law tenancy agreement now for tenancies due to commence after 1st May?

There are a variety of approaches to secure bookings now for after 1st May, but the National Codes cannot provide advice on how to approach this, and Members should seek advice, particularly around issues raised by the transition from assured shorthold tenancies to assured tenancies.

If I am a member of the National Code, will all my tenancies by exempted from the Renters Rights Act from 1st May 2026?

This question has two parts.

The exemption relates only to individual tenancies and is not conferred in a blanket way to all tenancies offered by a Member. So only individual tenancies that meet these criteria are capable of being exempt and common law tenancies. If a tenancy did not meet the criteria, for example, a Member rented a flat within the development to the building manager, this would not be covered by the exemption.

The second part relates to when the tenancy is entered into. Any new agreements, formed after 1st May 2026, that meet the above criteria, will be common law tenancies and therefore not subject to the Act. Any existing agreements, granted before the 1st May 2026, will become assured tenancies from that date and these tenants will be covered by the new provisions in the Act. The article on transitional phase provides more detail. The Government have created some important temporary provisions for PBSA operators to navigate the transitional year, and the article provides an overview of these.

Does this apply to Universities?

No. It should be remembered that these changes to tenure brought about by the Act do not apply to organisations (mainly Universities and other specified bodies) who are already exempted from the assured tenancy regime by means of Paragraph 8 Schedule 1 to the Housing Act 1988 Lettings to Students. Universities are therefore unaffected by the changes on 1st May and can carry on with their existing tenancy arrangements with students.

How do we manage assured tenancies in PBSA during the transition?

As previously detailed to Members, tenancies granted before the 1st May 2026 implementation date will convert to assured tenancies, and in practice this means that the many students who have tenancies for the 2026 – 2027 academic year will be able take advantage of Renter’s Right Act provisions such as giving two months’ notice, requesting a pet and paying rent monthly. Members should consider how they will manage these issues and put appropriate policies and procedures in place to cover the transitional period.

The Government recognised the problems that Members would have in dealing with assured tenancies in PBSA, and made some additional concessions for Members to enable possession to be regained from assured tenancies during the transitional year, including

• The property will not have to be an HMO to use possession ground 4a

• The July-September time frame for 4a will not apply

• Signing tenancies less than 6 months in advance to have access to ground 4a will not apply

• Within 28 days of the transition date, landlords will have to give tenants notice that ground 4A will apply if they intend to seek repossession.

Reference to this concession in the Act can be found here.

Members should seek advice on how to take advantage of this concession during the transitional year including the correct serving of relevant notices related from 1st May. There will be temporary operational and financial challenges during the transitional period, and Members should take advice and prepare now.

2. Communication with tenants

Members should prepare staff who deal with tenant enquiries to respond to questions about the Act and what it means for their tenancy. It is recommended that tenants with an agreement in place are provided with clear information on what the changes brought about on 1st May mean for them.

It is to be expected that there will be questions from tenants relating to the nature of their tenancy, particularly for any assured tenancies that come into existence on 1st May. It’s foreseeable that tenants living in the same building could have different tenancy arrangements depending on when their tenancy was granted, and Members should have information prepared in advance to deal with standard questions, such as FAQs.

3. Preparing for the New National Code for Non-Educational Providers

Members of the Non-Educational Code will be aware that a new Code will be introduced from 1st May 2026 following the consultation and recent updates, giving a summary of likely changes. The revised Code is currently with the Government for approval, and it is expected that final details of the new Code will be available for members in early spring 2026.

It is recommended that Members analyse the likely changes now and prepare for their implementation from 1st May, paying particular attention to:

New clause 4.6 (During the Tenancy) sets out a requirement for members to permit occupants to end an agreement by giving four weeks’ notice in given circumstances including if they are not accepted into their institution, on withdrawal from university or if they suspend their studies due to ill-health. The student is required to provide sufficient evidence at the time of giving notice.

In conclusion

In the long run, the exemption for Members built into the Act provides a helpful concession for the private PBSA sector that will put it on the same contractual footing as universities. This significant benefit has been granted by the Government in recognition of the good practice and fair management in place in the sector.

But charting the best route to the exemption will require the application of specialist advice by each Member to their own circumstances

The National Codes will continue to provide appropriate high-level guidance and pointers for Members, and increasingly for students, as the 1st of May approaches. Please take care to read and understand Members updates as they come through, as they will contain important information.

If you have any questions about the National Codes, their criteria and how they are adapting in preparation, then please don’t hesitate to get in contact [email protected]