The Intermediary – August 2026 - Flipbook - Page 32
BUY-TO-LET
Opinion
The biggest
impact won’t be
landlords exiting
M
uch of the
conversation
around the
Renters’ Rights
Act ahead of its
implementation
focused on whether it would push
landlords out of the market, and
there are certainly some signs that
is happening.
Continuum, a financial advice
business, recently reported that it was
seeing some landlords, particularly
those with smaller portfolios or older
investors, choosing to move away
from property as an investment
strategy. It noted that, as landlords get
older, many have less appetite to deal
with the ever-increasing burden of
legislation.
That echoes research from Savills
earlier this year, which suggested
around 700 former rental properties
were being listed for sale every day as
the legislation progressed.
Those figures maer, but they
only tell part of the story. From the
conversations we’re having with
brokers, the more significant shi
isn’t simply that some landlords are
leaving the market. It’s how those
who remain are adapting the way
they invest.
Watch the professionals
Professional landlords aren’t standing
still. If anything, the Renters’ Rights
Act has become a reflection point,
prompting many to reassess how their
portfolios are likely to perform over
the coming years.
We’re seeing more investors
reviewing which assets still justify the
capital tied up in them, where their
portfolios are performing best, and
whether restructuring could leave
them in a stronger position. The shi
is becoming less about expansion
30
The Intermediary | August 2026
for its own sake and more about
investing strategically.
That contrasts with many smaller
landlords, where a property or
two may have been intended to
supplement retirement income
rather than form part of a long-term
investment business. For some of
those landlords, the increasing weight
of regulation is understandably
prompting them to step away from
the market.
Specialist lending impact
That shi has clear implications for
brokers and lenders. Far more cases
now fall into the specialist category,
not because of the properties involved,
but because of the borrower’s
circumstances.
Discussions around how income is
generated, the ownership structure,
the level of flexibility required and
how an individual property fits within
a wider portfolio all demand a more
specialist, commercially-minded
assessment.
On paper, two houses in multiple
occupation (HMOs) might look almost
identical. Once you get into the detail
of the case, looking at the rental
income, the tenant profile and the
borrower’s wider portfolio strategy,
they can become very different
lending propositions.
Increasingly, brokers are helping
clients reshape portfolios rather
than simply finance acquisitions. An
individual property rarely tells the
full story, particularly as professional
investors continue to increase their
exposure to HMOs, semi-commercial
property and holiday lets.
There is oen far more behind what
first appears to be a straightforward
bridge or refinance. Understanding
how an individual asset supports the
wider investment strategy, alongside
ALEX UPTON
is managing director, specialist
mortgages and bridging finance
at Hampshire Trust Bank
what the borrower is trying to
achieve, is oen just as important as
understanding the building itself.
In the current market, flexibility
maers, but so does consistency.
Brokers need confidence that a
lender can understand complex
circumstances, develop a structure
that reflects those circumstances,
and provide a dependable route
through them.
Businesses, not just buildings
The Renters’ Rights Act won’t be the
last piece of legislation to influence
landlord behaviour and, as regulation
continues to evolve, complexity across
the buy-to-let (BTL) market is only
likely to increase.
For brokers and professional
investors alike, that means working
with lenders that understand the
commercial thinking behind an
investment, not simply the property
in isolation. It means working
with lenders that see complexity
as a problem to solve rather than a
reason to walk away from a case.
Ultimately, it’s about understanding
not just the buildings involved, but the
business behind the investment, and
structuring a solution that reflects the
wider strategy.
The long-term impact of the
Renters’ Rights Act won’t simply be
measured by how many landlords
leave the market. It will be reflected in
how professional investors adapt, how
their portfolios evolve, and whether
lenders are equipped to evolve
alongside them. ●
