What the Renters' Rights Act Means for PBSA Developers from 31 May 2026

The Renters' Rights Act (RRA) takes effect on 31 May 2026 — a major rebalancing of England's rental landscape. Periodic tenancies replace fixed-term ASTs by default, section 21 "no-fault" evictions are abolished, rent increases are restricted, and every landlord must serve a prescribed RRA Information Sheet to every tenant by the same deadline.

For purpose-built student accommodation operators, the picture is more nuanced than the headlines suggest. PBSA is exempt from the RRA — but the exemption applies only to tenancies signed from 1 May 2026 onward. The 2025/26 cohort of student tenancies, signed under the old framework, auto-rolls to periodic and remains subject to the new rules. That creates a hybrid operational reality for every live scheme through summer 2026 and into 2027.

What the RRA changes at sector level

The Act's structural changes affecting the wider PRS:

• Periodic tenancies become the default; fixed-term ASTs are largely abolished going forward
• Section 21 "no-fault" eviction is removed; landlords rely on revised section 8 grounds
• Rent increases are capped to once per year and tied to a defined process
• A new Private Rented Sector Database and Ombudsman scheme apply across the regulated landlord population
• The prescribed Information Sheet must be in tenants' hands by 31 May 2026

The Act is sweeping in scope and most of the press attention has focused on standard PRS. PBSA's regulatory treatment is genuinely different — but worth understanding precisely.

How the PBSA exemption actually works

The PBSA exemption is conditional and prospective. Two conditions need to be met:

1. Tenant is in full-time education — the tenancy must be entered into in connection with the tenant's education
2. Operator is a member of a registered code-of-practice scheme — typically the ANUK/Unipol Code or the UUK Code

Critically, the exemption applies only to tenancies entered into from 1 May 2026 onward. Older AST tenancies — including the entire 2025/26 academic year cohort signed in the spring or summer of 2025 — are not exempt. When those tenancies end their fixed term, they roll to periodic under the new RRA rules and remain subject to section 8 grounds for possession, Information Sheet compliance, and the rent-increase cap.

For most schemes this means a transitional 12-18 month window where two regimes coexist on the same site: new tenants on the exempt-PBSA framework, returning or rolled-over tenants on the standard RRA framework. The full exemption clean-state arrives only when the 2025/26 cohort has fully cycled out — likely September-October 2026 for most schemes, later for sites with longer lease structures.

What this means for live PBSA schemes

Three operational implications:

• Dual-status tenancy management — operational platforms need to flag each tenancy by its regulatory status and apply the right rules. Most institutional-grade PBSA operators are already working through this; smaller or owner-operator sites need to confirm their PMS handles it.
• Information Sheet compliance is universal — the 31 May 2026 deadline applies to every live tenancy regardless of exemption status going forward. Operators serving rolled-over tenants need the Sheet in their hands by the deadline.
• Section 8 grounds replace section 21 for the rolled-over cohort — possession routes for non-paying or breaching tenants change for that group; standard student-disciplinary frameworks remain unchanged.

What forward-funders will want to see at due diligence

This is where the financing implications surface. Forward-funders underwriting PBSA forward sales from H2 2026 onward will increasingly want to see:

• A clean tenancy-mix forecast at handover — what proportion of beds are on exempt-PBSA tenancies vs rolled-over RRA-bound tenancies?
• Operator code-of-practice membership confirmed in writing
• A documented Information Sheet compliance process across all tenants
• PMS-system confirmation that dual-status tenancy administration is implemented and audited

For schemes targeting institutional forward-funding from autumn 2026, surfacing this in the data room early — rather than at red-pen stage — meaningfully smooths execution. We've seen PBSA forward-funding momentum strengthen through Q1 2026; the schemes that close cleanly are the ones presenting full regulatory compliance up-front.

What developing.fund readers should take from this

Three practical reads:

1. Audit your tenancy mix now. Map exactly what proportion of your live tenancies are exempt-PBSA (post-1 May 2026) vs rolled-over RRA-bound (older ASTs). That single document drives every conversation with funders, valuers and operating partners through 2026-27.
2. Don't assume the exemption immunises new schemes. Forward-funders will still want to see operator code-of-practice membership documented, even for fully-exempt new schemes. The exemption is a regulatory carve-out, not a due-diligence shortcut.
3. Serve the Information Sheet by 31 May. Operational housekeeping — but a missed deadline triggers compliance risk that flows through to forward-funder DD questions.

How we use this at developing.fund

PBSA forward-funding routing remains one of our most active product areas. We work across the PBSA development finance market — matching schemes by size, location, sponsor track record and operational structure to forward-funders with live mandates. If a scheme's regulatory or operational profile needs sharpening before going to market, that's a conversation worth having early. Our forward-funding and forward-commitment desks handle the structuring side.

For an early conversation on a PBSA scheme — concept, planning, pre-build or pre-funding — arrange a call.

Frequently asked questions

Source: Freshfields, "PBSA: how new rules will hit pricing, capex and returns" (15 May 2026) — freshfields.com.