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We have recently published an insight which sets out the Key Amendments in the Residential Tenancies (Miscellaneous Provisions) Bill 2026 (the "Bill") and in particular the impact on landlords.
This insight examines the implication of the Bill for Student Specific Accommodation ("SSA") and Universities particularly regarding the tailored reset rules for SSA. Universities and other providers of SSA should have regard to the changes for determining market rent and the information to be furnished at tenancy/licence commencement which are set out in our previous insight which shall apply to them for new tenancies/licences created from 1 March 2026.
Introduction: The Existing Legal Framework
The Residential Tenancies Act 2004 (as amended) ("the 2004 Act") applies to every dwelling, the subject of a tenancy, and specifically extends to purpose-built student accommodation used for providing residential accommodation to students during academic term times. However, certain provisions do not apply to student-specific accommodation tenancies, including Part 4 security of tenure protections.
For universities, the 2004 Act permits students to occupy accommodation under licences rather than tenancies, with students paying licence fees rather than rent. Universities commonly grant either academic yearly licences (aligned with the academic calendar) or semester-based licences under this framework.
Rent Resets and the Three-Year Rule for Student Accommodation
The Bill removes the previous Rent Pressure Zone framework and introduces a nationwide rent regulation system from 1 March 2026, with rent increases generally subject to CPI-based limitations.
Crucially for universities, the Bill introduces a specific exception for SSA. For tenancies created on or after 1 March 2026 and before 1 March 2029, landlords may reset the rent following a period of not less than 3 years, during which CPI controls applied and any setting of rent was compliant.
The purpose and effect of these provisions is:
During the First 3 Years (1 March 2026 - 1 March 2029):
- All SSA is subject to CPI-based rent increase restrictions;
- Universities cannot reset rents to market value upon the commencement of each new student licence during this period;
- They must apply CPI-limited increases only (but not subject to the 2% per annum cap otherwise generally applicable);
- After 3 years of CPI compliance, they can reset rents to market value.
From 1 March 2029 Onwards:
- SSA that has operated as such for the preceding 3 years can reset rents to market value when new tenancies commence (provided the 6-month subsistence requirement is met);
- After each rent reset, the accommodation returns to CPI controls for another 3-year period;
- After each subsequent 3-year period of CPI compliance, another reset opportunity arises.
Key Operational Points
- No Reset For New Licence: The critical restriction is that Universities cannot use the commencement of each new student licence as an opportunity to reset to market rent during a 3-year CPI control period.
- Annual Review Limitation: Even during periods when market resets are permitted, rent reviews (CPI-based increases) can only occur once every 12 months
- 6-Month Subsistence Requirement: For accommodation to qualify for the ongoing reset provisions (from March 2029), tenancies/licenses must have subsisted for at least 6 months in each of the preceding 3 years – which would appear to be readily satisfied by the length of a typical academic year or rolling semester structures. However, Universities should be mindful where accommodation has not been filled and vacant for periods during the academic year, as to whether this may frustrate a reset opportunity being availed of.
Originally published 12 February 2026.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
