Room rental sector so far unaffected by Renters Rights Bill threat

Room rental sector so far unaffected by Renters Rights Bill threat

So far, supply in the room rental market remains largely unaffected by the Renters’ Rights Bill, according to flatshare website SpareRoom, with January 2025 the highest month for flatshare ads in four years. 

Between Jan-Apr 2025 inclusive, both the number of landlords using the site, and the number of ads placed by landlords, were up 11% on the previous year. Supply has been trending upwards since early 2022.

In a February 2025 survey of 942 landlords, two-thirds (67%) said they planned to either leave the rental sector altogether, reduce their property portfolios, or move into short-term/holiday lets. But in a repeat survey in May, this figure had dropped to 57%.

Landlord confidence has increased slightly. In February, 88% of landlords had no confidence in the market, by May this had fallen to 76%, though London landlords are more pessimistic: 82% have no confidence.

Small landlords are still a concern, as they may be more likely to exit the market than professional landlords. Four in 10 UK landlords with one to two rental properties say they plan to leave the market compared to 22% of those with five to nine properties and 26% of those with 10+ properties.

Small landlords are also more likely to be unaware of the Renters’ Rights Bill and less likely to have made any preparations than professional landlords. 

SpareRoom asked the 51% landlords who had made some preparations ahead of the passing of the Renters’ Rights Bill what they had been doing. 

Almost a third (32%) of UK landlords and a quarter of London landlords said they have increased rents. Close to a fifth (19%) of UK landlords and 17% of London landlords say they have improved property standards. And around a quarter (24%) of UK landlords are looking at how to cover themselves financially against legal claims and unpaid rent.

Fewer small landlords in the flatshare market would affect renters financially, and not just because of reduced supply. Of those who’ve made preparations ahead of the Bill, 45% of landlords with 5+ properties have increased rents, compared to just 18% among small landlords with one to two properties. 

Matt Hutchinson, director of SpareRoom, comments: “It would seem any impact on rental supply is likely to come after the Renters’ Rights Bill passes, when the changes kick in and landlords react. Professional landlords are more proactive than small landlords, but that proactivity is still too low – almost half of all landlords have made absolutely no preparations at all. 

“Whatever your views on the Bill, change is coming and with very few alterations to what has been proposed, so now is the time for landlords to get on the front foot, gather knowledge, and get ready. Fortunately, awareness is high, but even 7% of landlords in the dark is too many.”

SpareRoom survey of 821 UK landlords in May 2025: 

LandlordsPlan to leave the rental marketPlan to reduce portfolioPlan to invest in holiday / short-term letsPlan to expand portfolioUnaware of Renters’ Rights BillMade no preparations for Renters’ Rights Bill
All UK29%25%3%9%7%48%
UK with 1-2 rental properties40%9%4%6%11%53%
UK with less than 5 rental properties33%18%4%7%11%52%
UK with 5-9 rental properties22%35%4%10%3%48%
UK with 10+ rental properties26%34%1%13%1%36%
All London34%26%2%9%7%53%
London with 1-2 rental properties43%11%1%5%7%55%
London with 5+ rental properties36%36%1%7%0%49%

This article is taken from Landlord Today