Last week, SpareRoom suspended dozens of professional letting agents’ accounts without prior warning, citing breaches of its terms due to the use of automation tools. This action affected agents managing thousands of Houses in Multiple Occupation (HMO) rooms across the UK, disrupting their ability to communicate with prospective tenants and manage viewings.

Immediate Suspension of Accounts

SpareRoom’s decision to suspend accounts came as a shock to many agents, who rely heavily on the platform as their primary route to market. Lee Dumbarton, founder of UrbanShare, which operates in London, Surrey, and the home counties, described the suspension as “a real shock” and emphasised that their use of automation tools was intended to improve response times for tenants rather than to gain an unfair advantage.

Because SpareRoom handles enquiries through its internal messaging system, suspended agents found themselves unable to contact prospective tenants. This also meant that viewings already scheduled could not be confirmed or rearranged, causing immediate operational difficulties. Some agents reported that access was briefly reinstated after contacting SpareRoom to highlight existing appointments.

Automation Tools and Platform Restrictions

The core issue relates to SpareRoom’s strict prohibition on automated activity, as outlined in its terms of service. The platform reserves the right to suspend or terminate accounts at its discretion, particularly when third-party tools are used to streamline responses or manage enquiries. The automation tool specifically referenced in the suspensions is Nestflo, which is widely used by HMO agents to handle enquiries and bookings.

Roland Tao, founder of Nestflo, expressed surprise at the suspensions, stating, “We built Nestflo to help agents work more efficiently. Faster responses to applicants, viewings booked sooner, fewer people left waiting to hear back.” He also questioned the accuracy of SpareRoom’s claim that Nestflo generated over 300,000 requests within a 24-hour period, noting that such a volume would have caused significant issues for his company’s infrastructure, which were not observed in their logs.

Impact on Letting Agents and Operations

For many agents, automation tools have become integral to managing the increasing administrative demands, especially with the upcoming Renters’ Rights Act. Larger operators with multiple staff members rely on such tools to schedule replies and organise viewings efficiently. The sudden removal of these tools forced agents to revert to manual processes, significantly increasing their workload.

An industry insider commented on the ongoing challenges: “Whilst accounts may have been activated, we still have zero allowance of using any tools to help automate the business, and we are struggling now with a load of manual work that we previously had automated.” They added that replying to simple tenant enquiries now takes considerably more time, and the risk of further suspensions discourages development of in-house automation solutions.

SpareRoom’s Response and Site Performance Concerns

SpareRoom stated that the suspensions were necessary to protect the site’s overall performance. A spokesperson explained, “We understand the need for automation but, in this case, a small group of users were using a particular bit of third party software that put a huge strain on site infrastructure.” They warned that continued use could have caused site-wide performance issues affecting all users, prompting the decision to suspend the accounts responsible. Following resolution of the issue, all affected accounts have now been reactivated.

What this means for landlords

Landlords with properties managed by agents affected by these suspensions may experience delays in tenant communication and viewings. The reliance on SpareRoom as a primary marketing platform means that any disruption can impact the letting pipeline and potentially landlord income. Additionally, the removal of automation tools may slow down the letting process, as agents adjust to increased manual workloads.

Landlords should be aware of the operational challenges faced by agents and maintain open communication to mitigate any negative effects on tenancy agreements and property management. The situation also highlights the importance of understanding platform terms and the risks associated with third-party software use.

Source: Based on reporting from Property118

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TLA update

The Landlord Association is currently onboarding new service providers into its Trusted Partner Hub, a new initiative designed to support landlords, tenants, letting agents, and property managers with vetted, high-quality services. As one of the fastest growing landlord associations in the UK, TLA offers partners direct access to an engaged and active member base at the point of need. Service providers across legal, maintenance, insurance, finance, mortgages, tenant screening, and property services can register their interest here: https://landlordassociation.org.uk/become-a-tla-service-partner/