"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"
- Matt Hutchinson - SpareRoom
Rental supply in the flatshare sector continues to climb steadily, with new data suggesting that concerns over the Renters’ Rights Bill have yet to affect landlord activity on the ground.
According to flatshare platform SpareRoom, the number of rental listings on its site has been rising consistently since early 2022. The trend shows no sign of slowing, with January 2025 recording the highest volume of flatshare ads in four years. Across the first four months of 2025, the number of landlords using SpareRoom and the number of listings placed were both up 11% compared to the same period in 2024.
Despite this continued growth in supply, 48% of UK landlords have yet to make any preparations for the Renters’ Rights Bill. SpareRoom's research points to a growing divide in landlord behaviour and confidence, particularly between small-scale and professional landlords.
A February 2025 survey of 942 landlords found that 67% planned to either exit the rental sector, downsize their portfolios, or shift towards short-term lets.
However, a follow-up survey in May showed this figure had declined to 57%, suggesting a slight improvement in sentiment. General confidence has also edged up: 76% of landlords reported having no confidence in the rental market in May, down from 88% in February. In London, however, pessimism remains more pronounced, with 82% of landlords lacking confidence.
Small landlords remain a key concern. Those with one to two properties are significantly more likely to exit the market compared to those with larger portfolios. Four in ten small landlords said they plan to leave the sector, compared to 22% of those with five to nine properties, and 26% of those with 10 or more.
Awareness and readiness around the Bill also vary widely. Small landlords are less likely to have made any preparations, and a greater proportion remain unaware of what the legislation entails. Among the 51% of landlords who have taken steps to prepare, 32% reported increasing rents, including 25% of landlords in London. Some 19% said they had improved property standards, while 24% were reviewing how to protect themselves financially against legal claims or unpaid rent.
Importantly, any loss of small landlords from the flatshare sector could affect renters financially. Among landlords who have prepared for the Bill, 45% of those with five or more properties have increased rents, more than double the 18% rate among small landlords.
“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," comments Matt Hutchinson, director of SpareRoom. "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.”
