Landlords in London face a growing student housing crisis under the Renters Rights Act, Propertymark has warned. The trade body says the legislation’s restrictions on student evictions will create bottlenecks that compound the capital’s existing rental shortage.
Ground 4A restrictions hit small landlords hardest
In a detailed response to a London Assembly consultation, Propertymark highlighted a critical flaw in the new legislation. Under the Renters Rights Act, landlords with one and two-bedroom properties cannot use Ground 4A to evict students when they graduate.
With an estimated 400,000 university students in London, new students rely on graduates vacating properties to find homes. If fewer graduates leave on time, incoming students will face a growing housing crisis. This compounds existing pressures on landlords considering their options under the RRA.
Multiple RRA challenges for London landlords
Propertymark identified several London-specific problems created by the legislation. Around 60 percent of London local authorities now operate at least one selective licensing scheme, with half also running additional licensing schemes. The PRS Database central to the Act risks duplicating work and fees, potentially pushing landlords out of the sector or discouraging registration.
London also has an estimated 82,000 short-term letting properties – more than any other part of the UK. Even with London’s 90-night restriction on short lets, higher yields and lower regulatory burden make platforms like Airbnb an attractive alternative to long-term letting for some landlords.
Trade body calls for implementation clarity
The consultation response forms part of Propertymark’s broader campaign to highlight implementation challenges before the Act takes effect. The body argues that London’s unique rental market requires specific consideration, particularly given the capital’s role as a major student destination.
For landlords with smaller student properties, the restrictions create a significant new risk. Without the ability to manage tenancy turnover aligned to academic years, landlords may face extended void periods or choose to exit the student market entirely.
Editor’s view
The student housing exemption gap is a clear oversight. Landlords with smaller properties are being penalised for providing exactly what students need – affordable, right-sized accommodation. Another case of unintended consequences from rushed legislation.
Author: Editorial Team – UK landlord & buy-to-let news, policy, and finance
Published: 17 February 2026
Sources: Propertymark, London Assembly
Related reading: Professional landlords drive BTL lending despite RRA concerns
