The supply of UK flatshare rentals continues to rise in 2025, with fresh data from SpareRoom indicating that fears over the Renters’ Rights Bill have not yet dented listings. However, a significant proportion of landlords – particularly smaller ones – remain underprepared for the legislation.
According to SpareRoom, January 2025 marked the busiest month for flatshare ads in four years. Between January and April, both the number of landlords using the platform and the number of ads posted were up 11% year-on-year. The platform said the upward trend has been consistent since early 2022.
A survey of 942 landlords in February showed 67% planned to exit the rental sector, reduce their portfolios or switch to short-term lets. That number fell to 57% in a follow-up survey in May, suggesting confidence is slowly recovering. However, landlord sentiment remains cautious: 76% of landlords reported having no confidence in the market, compared to 88% in February. In London, pessimism remains higher, with 82% of landlords expressing no confidence.
Smaller landlords appear most at risk of exiting the market. Four in 10 landlords with one to two properties said they plan to leave, compared to 22% of those with five to nine properties and 26% of those with 10 or more. They are also less likely to be aware of the Renters’ Rights Bill and are the least prepared, with 53% of landlords with one to two properties reporting they had made no preparations.
Among all landlords surveyed in May 2025, 48% had made no preparations for the legislation. Those who had acted were most likely to have raised rents (32%), improved property standards (19%), or taken steps to protect against legal claims and unpaid rent (24%). Larger landlords were more likely to increase rents – 45% compared to just 18% of smaller landlords.
Matt Hutchinson, director of SpareRoom, 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.
“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.”
