Investors focused on long- and short-term lets risk being forced out of the sector by the Renters’ Rights Act, according to Pass the Keys, which says it has seen its landlord clients assess whether to stay, leave or pivot within the rental sector.
The company, which manages more than 1,700 short and mid-term lets across more than 65 UK and Spanish locations, says that the pressure exerted by the act risks shrinking the supply of both long and short-term lets, rather than improving affordability.
Wesley Brown, COO of Pass the Keys, said he had seen evidence of landlord investors reconsidering their presence in the rental sector.
“Our local partners around the country are receiving a flood of enquiries from traditional long-let landlords concerned about what the Renters’ Rights Bill means for their business,” he said.
“For many, it means longer commitments and reduced flexibility, and they’re faced with tougher decisions about whether remaining in the market stacks up.
A complex reality
“The danger is that policymakers frame this as a choice between short lets and long lets, when the reality is far more complex. If landlords are squeezed too hard in the long-let sector, some may leave the market altogether, and this further tightens supply and pushes rents even higher.”
And it’s not as easy as shifting to short-term lets, he said.
“Short-term letting is not always the immediate alternative. There are now tougher licensing regimes, registration requirements and rising local taxes. So, we’re seeing pressure on both sides of the market, with the risk that tenants, guests and local economies all lose out.”
Brown said the conversation must move beyond short versus long lets and focus instead on balanced regulation that supports supply, standards and local economies.
“Our experience shows that when operators and policymakers collaborate, both sectors can coexist while delivering stable income and suitable lodgings for both tenants and guests,” he said.
Lessons from Scotland
Natalia Soler, owner of Pass the Keys Glasgow, who manages more than 30 properties in Scotland, many of them mid-lets, said the experience of new regulation in Scotland could provide lessons for England.
“In Glasgow, the introduction of stricter licensing for short-term rentals in 2023 created a challenging environment, requiring many operators to rethink their strategies. For us, it became an opportunity to adapt, and we pivoted much of our portfolio towards mid-term lets to meet growing demand from professionals, contractors, and those in transition between homes.”
“Glasgow shows that, despite setbacks, regulation can encourage innovation rather than restrict it. By evolving our model, we’ve been able to maintain strong occupancy, support local demand, and demonstrate how short-let expertise can translate into broader, more sustainable rental solutions.”