Ground 4A student lets: holding deposits and the six-month rule

Ground 4A student lets in England come with a timing rule that clashes with how student houses are let. The ground lets a landlord recover a student HMO for the next academic year. But the period from entering into the tenancy to the tenants' entitlement to possession must be "six months or less". That rule sits in Schedule 2 to the Housing Act 1988, as amended by the Renters' Rights Act 2025. On The Landlord Law Blog (12 October 2026), Tessa Shepperson sets out how a holding deposit could bridge the gap.

What does Ground 4A actually require?

The statute sets six conditions. The dwelling-house must be "in an HMO or is an HMO" (a house in multiple occupation, as defined in the Housing Act 2004). The tenant must meet the student test when the tenancy is entered into: a full-time student, or someone the landlord reasonably believes would become one during the tenancy. Where two or more people are the tenant, all of them must meet it.

The landlord has to give a written statement "before the tenancy is entered into" saying they wish to be able to recover possession on this basis. The six-month window runs from "the day on which the tenancy was entered into" to "the day on which the tenant was entitled to possession". The relevant date (the date specified in the possession notice) must fall in the period from 1 June to 30 September inclusive. And the landlord must intend to relet to students next.

Section 8 of the Housing Act 1988 sets a Ground 4A notice period of four months beginning with the date of service. GOV.UK's overview for landlords, which applies to England, says the ground does not cover all student properties, such as purpose built student accommodation.

How would a holding deposit reserve a student house?

Shepperson's view is that two workarounds, an "agreement to let" and delaying the landlord's signature, would risk losing the right to use Ground 4A. She argues the real question is when the parties become legally committed. Her alternative is a holding deposit, which the Tenant Fees Act 2019 governs.

A holding deposit above one week's rent is a prohibited payment to the extent of the excess (Tenant Fees Act 2019, Schedule 1). The default deadline for agreement is the fifteenth day of the period beginning with the day the deposit is received. But a different day can be agreed "in writing" (Schedule 2). GOV.UK's guidance on tenancy fees confirms the cap is per tenancy, not per tenant.

For illustration, a house let at £2,600 a month has an annual rent of £31,200, so one week's rent is £600 for the whole group. Our free HMO valuation calculator can help price a student house.

Shepperson's example is negotiation in October for a 1 July start, with the deposit deadline extended to 10 January. The deposit agreement reserves the house without creating a tenancy, and the draft tenancy, marked "subject to contract", stays unsigned. The Ground 4A statement comes first, then signing by the deadline, from 2 January, which she says "gives a little margin".

On my count, a period beginning with 2 January and ending with 1 July, both days included, is exactly six months. That makes 2 January the edge of the window for a 1 July start, so you may wish to have a solicitor confirm it. This is one practitioner's approach, not advice on any individual case.

What does this mean for landlords and students?

For landlords, Shepperson calls the arrangement less secure than signing used to be, but "better than nothing". A group that tells the landlord before the deadline it will not proceed may lose its deposit (Schedule 2, paragraph 10). A holding deposit is capped at one week's rent, and our free stress test calculator lets you test what a void would do to rental coverage.

For your tenants, a holding deposit agreement drafted as Shepperson describes binds neither side to the tenancy until signing. If the landlord decides not to proceed, Schedule 2 generally requires the deposit back within 7 days. GOV.UK's overview for tenants says a tenant can end an assured periodic tenancy with 2 months' notice after 1 May 2026.

Our free property resources hub for landlords covers the wider Renters' Rights Act changes.

Key takeaways

• In England, Ground 4A requires six months or less between entering into the tenancy and the tenants' entitlement to possession (Housing Act 1988, Schedule 2, as amended by the Renters' Rights Act 2025).

• The written Ground 4A statement must be given before the tenancy is entered into, and the date in the notice must fall from 1 June to 30 September inclusive.

• Ground 4A notice is four months beginning with the date of service (Housing Act 1988, section 8).

• A holding deposit is capped at one week's rent per tenancy, not per student, and its 15-day default deadline can be changed in writing (Tenant Fees Act 2019).

• The Landlord Law Blog suggests a holding deposit agreement to reserve a student house, signing the tenancy inside the six-month window.