In England, sales are most evident in the southern regions, with 24% of agents reporting landlords exiting the market in the Eastern region and London, while in the South East the figure was 22%.

Of the 15% of agents reporting that landlords are changing existing properties to overcome rules on HMOs, many have reported landlords are no longer letting property to more than three tenants. Students have been the most affected group, identified by 42% of agents in most regions of the country. However, in the Eastern region migrants were the hardest hit group.

21% of letting agents have noted a reduction in the supply of affordable housing as landlords have exited the HMO sector. However, the impact on rental levels has been muted with 85% of agents reporting no change at all. The largest impact reported was in London although rental rises have been moderate.

Jeremy Leaf, RICS spokesperson makes the point that the decrease in houses with multi-occupation will help to cut down on rogue landlords but will cause problems by reducing the number of properties available as landlords decide to withdraw from the sector, so creating an additional burden on the state to house the most vulnerable tenants.

A house which has been converted entirely into bedsits or other non-self-contained accommodation and which is let to 3 or more tenants who form two or more households and who share kitchen, bathroom or toilet facilities.

A building which is converted entirely into self-contained flats if the conversion did not meet the standards of the 1991 Building Regulations and more than one-third of the flats are let on short-term tenancies.

In order to be an HMO the property must be used as the tenant's only or main residence and it should be used solely or mainly to house tenants. Properties let to students and migrant workers will be treated as their only or main residence and the same will apply to properties which are used as domestic refuges.

Edwina Baniqued