Landlords have disposed of at least 2,000 student HMO beds across Britain over the past year, responding to the Renters’ Rights Act and increased regulatory requirements, according to data from specialist estate agency YieldMe.
The agency reports handling £170 million worth of HMO sales in the 12-month period, representing more than 2,000 student bedrooms. Sales activity was concentrated in university cities, with Exeter, Bristol and Bath seeing the highest transaction volumes.
Record transaction levels
YieldMe recorded its busiest year for student HMO transactions, with increasing numbers of landlords choosing to sell properties, reduce portfolio sizes or reassess long-term investment strategies. The trend reflects broader shifts in the property market as regulatory changes take effect.
James Biddle, Managing Director of YieldMe, said: “There’s been a noticeable shift in landlord sentiment over the last 12 months, particularly following the introduction of the Renters’ Rights Act. 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.”
Biddle added that whilst the student market continues to perform strongly in major university cities, the operational approach of landlords is changing.
Institutional interest grows
The agency noted growing interest from institutional investors in the sector. Asset manager Brookfield acquired a 1,300-home student HMO portfolio for £100 million last year, whilst Tokoro Capital and GCM Grosvenor launched a £200 million investment partnership targeting HMOs and student accommodation.
The data suggests a transition in the student accommodation sector, with individual landlords exiting whilst larger institutional players increase their holdings. This shift coincides with wider regulatory changes affecting the buy-to-let market, potentially reshaping ownership structures across the rental sector.