Flatshare supply grows despite landlord fears over Renters’ Rights Bill

The flatshare market is experiencing a rise in available rooms, with January 2025 marking the highest month for advertisements in four years, according to SpareRoom.

The flatsharing platform says that despite this growth, concerns linger among small landlords over the Renters’ Rights Bill – with many unprepared for the upcoming changes.

From January to April 2025, the number of landlords advertising and the volume of their listings rose by 11% compared to the previous year.

This upward trend in room rental supply, which began in early 2022, shows no signs of slowing.

Though an alarming 7% of landlords say they haven’t heard of the Bill.

Landlords will react

A director of the firm, Matt Hutchinson, said: “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.”

He added: “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.”

Two-thirds consider selling up

The SpareRoom landlord survey reveals unease among landlords, particularly those with smaller portfolios.

In February, a survey of 942 landlords found that 67% were considering exiting the PRS, downsizing their property holdings or shifting to short-term or holiday lets.

By May, this figure had fallen to 57%, indicating a slight improvement in sentiment.

Landlord confidence also saw a modest boost, with 76% expressing no confidence in the market in May, down from 88% in February.

However, London landlords remain more pessimistic, with 82% lacking confidence.

Small landlords are vulnerable

Small landlords, particularly those with one to two properties, are the most vulnerable.

Four in 10 of these landlords plan to exit the market entirely, compared to 22% of those with five to nine properties and 26% with 10 or more.

Also, 53% of small landlords with one to two properties have made no preparations for the Renters’ Rights Bill.

A surprising 7% of landlords are unaware of the Bill, compared to just 1% of those with 10 or more properties.

Most landlords are preparing

Among the 51% of landlords who have taken steps to prepare for the Bill, 32% of England’s landlords and 25% of London landlords have raised rents.

Around 19% of England’s landlords and 17% of London landlords have focused on improving property standards.

Another 24% are looking at financial protections against legal claims or unpaid rent.

Larger landlords with five or more properties are more likely to increase rents (45%) than small landlords with one to two properties (18%).