It is accurate to say that many private landlords as well as those who provide services to the sector such as letting agents, are quite concerned about the ongoing government rhetoric and the increasing burden of regulations for the private rental sector (PRS).

The much talked about Renters Rights Bill is gradually working its way through Parliament and is likely to reach the House of Lords shortly and could well be implemented by this summer (2025).

This has understandably led to many portfolio landlords and property investors stepping back from making new purchases and in some cases a good number have already or are now looking to sell some or all of their residential rental properties. This is particularly the case with those who are approaching retirement age or have grown weary of the sector’s challenges.

One other obvious fact, which is deterring many of those who want to expand their portfolios and make further investment purchases, is the cost of mortgage finance, as interest rates have now returned toward the long-term averages of around 5%.

This is particularly relevant in locations in the south-east of England, despite the ongoing increases with average monthly rents in many locations having risen by almost 10% in the previous 12 months. Given the well-documented ongoing shortage of new rental property and ever growing demand from renters/tenants, this trend for rental price increases looks likely to continue for at least another few years in many locations.

However, the latest data from Spareroom, which focuses on the room letting and HMO sector, shows that monthly rents for rooms have declined by 2% in the capital in the 12-month period up to December 2024. The company also states that across the UK, average room rents only increased by 1% but with locations such as the north-west region seeing room rents increase by 5%.