Propertymark is warning that London’s existing housing shortage will get worse thanks to the Renters Rights Act.

The trade body – in a response to a London Assembly consultation – has pointed out that the increased scale of the shortage involves London’s high student population.

It’s estimated that there are more than 400,000 university students alone in London.

Under the Renters Rights Act landlords with one- and two-bedroom properties cannot use Ground 4A to evict students when they graduate. 

New students will therefore rely on graduates vacating properties to find a home. 

Propertymark says that if fewer graduates leave on time for the following years’ students, London’s student population will face a growing housing crisis.

This isn’t the only problem identified by the agents’ trade body, demonstrating what it says is the particularly severe effect the Act will have on the London lettings landscape. 

For example, as of November 2025 some 60% of local authorities in London have at least one selective licensing

scheme, with a further 50% having an additional licensing scheme.

Propertymark believes the Private Rental Sector (PRS) Database – a key part of the Act’s provisions – has the potential to duplicate work and fees for landlords, potentially pushing many out of the PRS or leading to a reduction in landlords signing up to the Database.

The body has also identified a problem with Airbnb-style short lets. 

London has an estimated 82,000 properties used for short-term lettings, higher than any other part of the UK.

Even with London’s additional restrictions on short-term lets – a ban on short letting of a property for more than 90 nights a year – this sector’s higher yields and lower red tape make it an attractive alternative to long-term letting for some landlords. 

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