Over-regulation may take UK rental market into sharp decline – warning

Over-regulation may take UK rental market into sharp decline – warning


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A problem city rental market in the UK may be a sign of the trouble ahead if widespread rent controls and other anti-landlord restrictions are introduced.

Lettings website Rentaroof says Bristol’s lettings market is showing early signs of what happens when there is large scale regulation. 

The average monthly rent in Bristol now stands at £1,464, down from £1,522 during the same period in 2025.

Apartment and flat rents, which make up Bristol’s largest rental category, recorded the biggest shift, falling by 3.6% (£57) year-on-year to an average of £1,514.

Bristol City Centre experienced the sharpest fall at 10.9%. 

Rentaroof says the area’s high concentration of flats appears to have amplified the slowdown within the apartment market. 

The average time rental properties remain on the market in Bristol has also increased over the past year, rising from 25 days to 31 days.

Despite the slowdown, properties across Bristol are still typically letting within around six weeks, suggesting overall tenant demand remains active.

Jasper de Groot, chief executive of Rentaroof UK, says: “Britain is heading in the same direction as the Netherlands when it comes to rental reform, and the warning signs are already there.

“In the Netherlands, similar changes led to a sharp reduction in rental supply as landlords and investors exited the market. 

“Around 12.5% of the total private rental stock, equating to more than 80,000 homes, were eventually sold off and removed from the sector.

“In Bristol, we’re already seeing rents soften and properties taking longer to let, particularly in flat-heavy areas such as the City Centre.

“We also expect landlord behaviour to change significantly under the Renters Rights Act.

“In high-demand areas … landlords are likely to increase advertised rents upfront because they will no longer be able to rely on above-asking bidding to achieve higher final rents.

“The bigger concern is supply. International evidence suggests rental stock is likely to decline over time if landlords continue exiting the market.

“The latest English Private Landlord Survey already shows 31% of landlords are planning to reduce their portfolios, suggesting supply pressures could intensify over the coming years.

“If supply continues to tighten, today’s softer conditions could eventually reverse and place upward pressure on rents again.”

Rent changes impact around a quarter of Bristol’s households, and student-friendly listings now account for 36.6% of Bristol’s rental supply, above the UK average of 31.1%.

This reflects the city’s large student population and concentration of shared accommodation.

Rentaroof says this also impacts Bristol’s overall rental averages, as a significant proportion of the market is made up of lower-cost room and shared-property stock.

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