Ground 4A is designed to help landlords regain possession of student properties between academic years. But landlords and letting agents need to understand several restrictions, and I’m already seeing signs that some are getting it wrong.
I think Ground 4A is being badly handled. On the surface, it seems straightforward: a landlord lets a property to a group of students and wants to regain possession so they can let it to another group of students. But a closer look at the legislation reveals several important restrictions that aren't immediately obvious.
There are also misconceptions about how Ground 4A works, particularly regarding the purpose-built student accommodation (PBSA) exemption, the notice landlords must give, and the circumstances in which they can rely on the ground.
Ground 4A is a possession ground designed to allow landlords to regain possession of properties let to students when they intend to let them to another group of students.
It addresses a specific need in the student rental market, where landlords often need to coordinate tenancies around the academic year. However, it isn't a general-purpose ground for recovering student accommodation. There are several conditions that must be met before a landlord can rely on it.
In particular, landlords need to understand the distinction between Ground 4A and the purpose-built student accommodation (PBSA) exemption, the specific notification required in the tenancy agreement, and which properties and tenants qualify.
First, establish whether the tenancy falls within the PBSA exemption. If it does, the tenancy falls outside the scope of the Housing Act 1988, meaning Ground 4A won't apply in the usual way.
However, I've noticed people don't always appreciate how important it is that the exemption is in place.
You can rely on the PBSA exemption only if the relevant conditions were satisfied before you granted the tenancy. The important date is when you grant the tenancy, not when the tenant actually moves in.
That matters because some tenancies granted before the relevant legislation came into force are now ending. Landlords may assume their properties qualify for the exemption today, without realising it wasn't available when they granted those tenancies.
I've advised on this issue before, and I suspect there are landlords who think they have the exemption when they don't.
Another mistake I've seen is people confusing Ground 4A with other possession grounds that require landlords to notify tenants of their intentions in the tenancy agreement.
Ground 4A is different. You need to give a specific written statement explaining that the tenant met the student test when the tenancy was entered into and that you intend to let the property to another group of tenants who also meet that test.
Simply including Ground 4A in a list of possible possession grounds isn't enough to address this specific requirement.
The notice must make the landlord's intention clear. In other words, it needs to explain that the property was let to qualifying students and that the landlord intends to let it to another qualifying group when the tenancy ends.
This is an important detail to get right from the outset. If you're a landlord or letting agent, check the wording used in your tenancy agreements rather than assuming a standard list of grounds will suffice.
The student test is another area where the detail matters.
The key question is whether the tenants met the relevant criteria when they entered into the tenancy. Broadly, they must either have been full-time students at that point, or the landlord must have reasonably believed they would become full-time students during the tenancy.
That means someone renting a property before starting their first year at university can potentially qualify, even if they aren't technically a student when the tenancy begins, provided the relevant reasonable-belief test is met.
Equally, if someone was a full-time student when they entered into the tenancy but subsequently dropped out, that doesn't necessarily prevent the landlord from relying on Ground 4A. The test is tied to the point at which the tenancy was entered into.
Legislation sets out the definition of a qualifying student, including Schedule 6 of the Education Reform Act 1988 for England. But determining whether someone is a full-time student isn't always as straightforward as it sounds.
In practice, the course provider's classification will generally be an important consideration. If the university says a course is full-time, that will usually inform the assessment. More complicated situations can arise with courses that combine different forms of education, including some apprenticeships. I wouldn't assume that every course involving university study automatically qualifies.
Even if the tenants meet the student test, the property itself must satisfy the relevant requirements for Ground 4A.
In particular, the property must fall within the applicable HMO requirements. That doesn't necessarily mean all occupants must be named on the same tenancy agreement, but the property's status still matters.
For example, a self-contained flat occupied by two students may not qualify as an HMO for these purposes.
Converted blocks of flats also add complexity. Certain properties can fall within the section 257 HMO provisions, so the distinction between an older converted building and a newer block of self-contained flats can affect whether Ground 4A applies.
This is one of the legislation's more counterintuitive aspects. You can't simply assume that a property qualifies because it's student accommodation. You need to check the relevant statutory requirements.
Ground 4A also restricts when you can seek possession. The relevant possession date must fall between 1 June and 30 September. The period between the tenancy being entered into and the date the tenant becomes entitled to possession must be six months or less.
Landlords must also account for the notice period and the rules governing how long a Section 8 notice remains usable.
This means the dates need to be planned carefully. Serving notice too early without considering the intended possession date can create problems, particularly when you're trying to coordinate the end of one student tenancy with the start of another.
For landlords and letting agents managing student properties, getting the paperwork and the calendar right from the outset is essential.
One of the more serious practical problems I've identified concerns joint student tenancies.
Imagine a group of students renting a house together. One student finishes their exams early and wants to leave at the end of May, but the other tenants have exams running through July and need to remain in the property.
Depending on the tenancy arrangements and the legal effect of the notice, one tenant's departure may end the joint tenancy for everyone.
That leaves the landlord in a difficult position. If the remaining students are allowed to stay, the landlord must address their continued occupation. But if the landlord grants them a new tenancy, that may affect the ability to rely on Ground 4A within the necessary timeframe.
Alternatively, the landlord could insist that everyone leaves, regardless of whether the remaining students have finished their exams. That's hardly a satisfactory outcome for anyone.
I've raised this issue with the Ministry of Housing, Communities and Local Government because it creates a real practical difficulty. The department acknowledged that this was an unexpected consequence of the legislation.
As the legislation currently stands, there's no obvious solution. It's an example of how a possession ground that looks straightforward in principle can become much more complicated in the reality of student renting.
My main concern with Ground 4A is that it comes with several restrictions that aren't obvious at first glance. I've already seen examples of errors, particularly around the notification that tenancy agreements must include.
The ground itself is relatively straightforward: if you meet the conditions, you can rely on it; if you don't, you can't. But establishing whether you meet those conditions requires more care than many people realise.
Landlords and letting agents need to check the property's status, understand the student test, ensure the correct notification is given, and plan the timing carefully.
Ground 4A is intended to address a specific need in the student rental market, allowing properties to be let to successive groups of students. But its effectiveness depends on landlords and agents understanding the requirements and getting the details right.