Landlords have sold at least 2,000 student HMO beds in Britain during the past year as they respond to the Renters’ Rights Act and increasing regulatory pressures, YieldMe reports.

The specialist HMO estate agency says it handled £170million worth of HMO sales in the past 12 months, which is equivalent to more than 2,000 student bedrooms.

Sales activity was strongest in university cities, particularly Exeter, Bristol and Bath.

Busiest year

YieldMe says it was its busiest year on record for student HMO transactions, with growing numbers of landlords seeking to sell properties, reduce portfolio sizes or review long-term investment plans.

James Biddle (pictured), Managing Director of YieldMe, says: “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.

The student market itself is still performing very strongly, particularly in major university cities, but the way landlords operate within it is changing.”

“The student market itself is still performing very strongly, particularly in major university cities, but the way landlords operate within it is changing.”

YieldMe, however, has found that there is increasing interest from institutional investors.

The agency says last year, asset manager Brookfield acquired a 1,300-home student HMO portfolio for £100million, and Tokoro Capital and GCM Grosvenor have launched a £200million investment partnership focused on HMOs and student accommodation.