"Landlords are looking at the direction of the market, the increasing costs involved, and the amount of regulation coming in, and many believe it is the right time to sell up"
- James Biddle - YieldMe
Student landlords are exiting the market in growing numbers, with new renters' rights legislation drawing much of the blame as property experts raise concern over the scale of the sell-off.
HMO agency YieldMe, which specialises in student properties, oversaw £170m in sales over the past 12 months, equivalent to more than 2,000 student bedrooms. The firm said it was its highest year on record for transactions, with activity concentrated across the UK's leading university cities, where demand for established student HMOs remains strong.
YieldMe said it had "never been busier" fielding enquiries from landlords looking to sell, scale back portfolios, or rethink long-term investment plans as rising costs and tighter regulation reshape the sector.
"There's been a noticeable shift in landlord sentiment over the last 12 months, particularly following the introduction of the Renters' Rights Act," said James Biddle, managing director of YieldMe.
"Landlords are looking at the direction of the market, the increasing costs involved, and the amount of regulation coming in, and many believe it is the right time to sell up.
"The student market itself is still performing very strongly, particularly in major university cities, but the way landlords operate within it is changing."
The comments reflect wider concern across the rental sector about the impact of the Renters' Rights Bill. Research from lender Pepper Money suggests around 220,000 rental properties could leave the private rented sector in England by the end of 2026, roughly 5% of the country's rental stock.
A separate industry survey found that up to a quarter of landlords are now considering selling properties or reducing portfolio sizes ahead of the proposed reforms, as uncertainty continues to build.
YieldMe believes the volume of activity seen over the past year points to a student property market in significant transition. More landlords are reviewing long-term plans, yet investor appetite for established student HMOs remains strong, suggesting the market is shifting in structure rather than collapsing in demand.
