Demand for single room rentals has rocketed in recent months, leading to a shortage of available accommodation.

Recent research undertaken by SpareRoom found that 96 per cent of the 6,000 renters surveyed were struggling to find appropriate accommodation. 

This demand is being driven by market changes, which has seen a big influx of potential renters since the summer, following the easing of Covid restrictions.

Spareroom asked potentially renters where they were moving from: while almost a third (29 per cent) were from an existing flatshare, 25 per cent were coming from the parental home and 14 per cent from outside the UK. A further 10 per cent were moving from a friend house or flat.

Spareroom says these figures show that significant numbers of tenants are coming into this market, rather than moving within it, creating supply issues. This includes young adults who moved back in with parents during the Covid lockdown and the return of overseas and UK students to cities for in-person rather than online studies.

This problem has been exacerbated by a lack of supply. SpareRoom’s survey of landlords found that almost six out of 10 of them (59 per cent)  said they had fewer rooms to fill than this time last year, with almost half of these landlords stating they had full occupancy in the rooms they had to let.

Supply issues look set to continue to be curtailed in the near future, with the research showing that 14 per cent of these landlords aren’t expanding their portfolio due to high house prices, with a further 10 per cent citing market uncertainty as a reason they for not expanding further.

A total of 9 per cent of landlords in this market have sold one or more of their properties, and 8 per cent said they cannot develop their properties due to a lack of tradespeople or materials.

When asked what was causing problems in this markets landlords were more likely to cite increased legislation (26 per cent),fewer buy-to-let tax breaks (22 per cent) or the threat of future legislation (22 per cent) than the Covid pandemic (11 per cent). 

SpareRoom director Matt Hutchinson says: “There’s no doubt Covid hit the rental market hard. Last year it was landlords struggling to fill rooms – this year it’s tenants struggling to find them. 

“But the pandemic isn’t what’s keeping landlords awake at night – it’s government policy. Recent legislation and tax reform made it clear that the government wants to steer the private rented sector away from an over-reliance on smaller investors. 

“Although the Tenant Reform Bill has been put on ice until 2022, many landlords are concerned about what it will bring. What tenants want most is stricter regulations for dealing with rogue landlords, so it’s highly likely the sector will see further change in the coming months and years.”

“Hopefully whatever the government chooses to do will target the real problem landlords and get them out of the market, making it a better place for landlords and tenants alike.”