The Intermediary – December 2025 - Flipbook - Page 27
BUY-TO-LET
Opinion
means for landlords
looking again at their numbers for
next year and beyond. And if they’re
not, then they probably should be.
The Budget change, plus the need
to meet the increased responsibilities
that come with the Act, should
probably prompt closer rent
reviews than might otherwise have
taken place.
In that sense, advisers should expect
more questions from clients who want
to understand what is permied, what
is practical, and how to plan ahead.
favouring limited company structures.
Our most recent Rental Barometer
showed 81% of buy-to-let (BTL)
applications to us coming from limited
companies rather than individuals,
and this Budget tax change is likely to
support – and grow – that paern.
Advisers cannot offer tax advice, but
they can help clients think through
what this means for their portfolios,
how finance differs between personal
and company structures, and what is
possible if a client does wish to explore
this route.
Some may even ask more seriously
whether it is worth moving existing
properties into a company. This is
not a simple step, as there are Stamp
Duty and legal costs to consider. But if
a landlord intends to hold a property
for many years, the long-term
comparison between higher ongoing
taxes and a one-off cost now may lead
to a different conclusion than before.
Advisers can help clients
understand the practicalities,
including how existing portfolio
equity could be used to meet the
costs and how this might affect
future funding.
The Act will bring a shi in how
landlords manage their properties.
The move away from fixed terms will
change how they approach renewals
and voids.
The new rules on seing and
adjusting rents will mean a more
structured approach to rent reviews.
And the new duties linked to landlord
registration and the Ombudsman
will require a more organised
approach overall.
Future direction
Keep up communication
Another area to watch is how
landlords choose to hold their
properties in future.
The direction of travel has been
clear for some time, with many
Advisers who understand these
points will be beer placed to support
clients, not just with finance, but with
clear guidance on what they need to
prepare for.
for the PRS may not happen for
another decade.
Time is of the essence
Most landlords will need time to
work through each part, but the clock
is certainly ticking, and when you
add in the Budget announcement, it
adds another layer to a period already
marked by planning and adjustment.
It is fair to say the tax rise will
influence how landlords assess their
costs. As mentioned, from next year,
rent can only be increased once a year
through the S13 process, but landlords
must show the figure reflects the
market and give two months’ notice.
As I write, and as you read this, it’s
obvious that many landlords will be
There is a clear
role for advisers to
provide straightforward
information”
LOUISA RITCHIE
is national account manager
at Fleet Mortgages
Our guide was created to help with
this, offering checklists for each part
of the Act and breaking down the
changes step by step.
You might wish to use this in order
to structure conversations with
landlord borrower clients and to help
those unsure about what the rules
truly mean for them.
Awareness among landlords is
still mixed, so there is a clear role for
advisers to provide straightforward
information and help clients take
early action where needed.
There’s no doubting that next
year, and beyond, is going to have
a different feel to it in this space,
and it will pay to communicate
regularly and effectively with those
clients impacted.
Which leads me to finally say that,
as this is my final article of the year,
I’d like to wish all readers of The
Intermediary a very merry Christmas
and a happy new year.
The sector will continue to change
in 2026, but with early planning and
good support, advisers and lenders
can help landlords meet the new
requirements with confidence and
make the most of the opportunities
that exist. ●
December 2025 | The Intermediary
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