More landlords offer room-only tenancies after Renters Rights Act changes

More landlords offer room-only tenancies after Renters Rights Act changes

Since the Renters Rights Act came into force, landlords in England are increasingly offering room-only tenancies to reduce risks linked to joint tenancy notices ending all agreements. This shift affects flatsharing arrangements and tenant choice.

More landlords in England have started offering room-only tenancies rather than joint assured tenancies, a move attributed to the impact of the Renters Rights Act. The Act means that if one tenant named on a joint tenancy gives valid notice, the tenancy usually ends for all tenants on the agreement. This has prompted landlords to reconsider how they let properties to flatsharers, aiming to reduce the financial risks associated with void periods when tenants leave.

According to data from property website SpareRoom, about 14% of landlords letting to flatsharers reported switching to room-only tenancies since the Act took effect, with a further 12% considering this change. The trend is supported by SpareRoom’s user data, which shows a decline in rooms advertised by existing or outgoing flatmates—from 30% to 26% of total rooms available—while rooms advertised directly by landlords and agents have increased from 42% to 44% in the third quarter of 2026.

How the Renters Rights Act influences tenancy structures

The Renters Rights Act introduced stronger protections for tenants in England, requiring landlords to have valid grounds and follow proper procedures to regain possession. A significant change is that a single tenant’s notice on a joint assured tenancy typically ends the tenancy for all tenants named on the agreement. This has created uncertainty for landlords about tenancy continuity when one tenant leaves, especially in flatshare situations.

Landlords have responded by offering room-only tenancies, which allow them to let individual rooms separately rather than as a joint tenancy. This approach reduces the risk of losing the entire tenancy if one tenant decides to leave, as the tenancy for other occupants can continue independently. It also limits void periods to single rooms rather than whole properties.

However, this shift has implications for tenants. A SpareRoom survey of nearly 4,000 tenants in England found that almost three times as many renters now rent by the room compared to joint tenancies. Despite this, 71% of tenants renting by the room reported that landlords did not allow them to choose replacement housemates when others left, reducing tenant control over household dynamics.

Practical impact on landlords and letting agents

For landlords, offering room-only tenancies can mitigate financial risks by limiting voids to individual rooms rather than entire properties. This can be particularly important in areas with high tenant turnover or where flatsharing is common. It also aligns with the Act’s requirements by providing clearer tenancy arrangements and potentially fewer disputes over possession.

Letting agents may need to adjust their tenancy agreements and management practices to accommodate room-only lets, including separate contracts for each tenant and tailored rent collection processes. Agents should also be aware of the reduced tenant influence over new flatmates, which could affect tenant satisfaction and retention.

Landlords and agents should review their tenancy documentation to ensure compliance with the Renters Rights Act and consider the benefits and drawbacks of room-only versus joint tenancies. They should also be prepared to manage tenant expectations around flatmate selection and household dynamics, which are increasingly important in shared living arrangements.

Uncertainties and considerations going forward

While room-only tenancies reduce some risks, they may create challenges in managing shared properties, such as coordinating repairs, utilities, and communal areas. The lack of tenant input on replacement housemates could lead to dissatisfaction and higher turnover, potentially offsetting some financial benefits.

The long-term effects of this shift on the private rented sector remain to be seen. Changes in tenant behaviour, market demand, and possible future amendments to tenancy law could influence the popularity and viability of room-only lets. Landlords should monitor regulatory developments and tenant feedback closely.

What landlords should do now

Landlords should assess their current tenancy agreements, particularly those involving flatshares, to determine if room-only tenancies might be more suitable under the Renters Rights Act. They should ensure all tenancy contracts clearly reflect the legal requirements and consider how tenant turnover and void periods could be managed effectively.

Engaging tenants in discussions about household composition and replacement flatmates may help reduce conflicts and improve tenant retention. Landlords and agents should also stay informed on official guidance and best practice recommendations related to tenancy management under the new legal framework.

Supporting landlords with compliance and management

The Landlord Association (TLA) offers resources to help landlords and letting agents adapt to changes brought by the Renters Rights Act. Through TLA membership, landlords can access up-to-date compliance information, tenancy agreement templates, and guidance on managing room-only lettings effectively.

TLA’s new property management platform, ORBIT, currently in BETA testing, is designed to assist landlords and agents in organising rental properties and portfolios. It helps with managing tenancy documents, recording communications, and keeping track of compliance activities, which are crucial when adjusting to new tenancy structures like room-only lets.

Members can explore the benefits of ORBIT BETA access and TLA’s compliance support to stay ahead of regulatory changes and maintain efficient property management practices.

Looking ahead, landlords should continue to monitor the evolving rental market and regulatory environment to ensure their tenancy arrangements remain both compliant and commercially viable.

Sources: Letting Agent Today