The Renters’ Rights Act represents one of the biggest shifts in the private rented sector in recent years, and while tenant demand remains incredibly strong, the growing burden of legislation is causing many landlords to reconsider their future.
The issue facing the sector is not a lack of renters. Demand for rental property continues to outstrip supply, with void periods remaining low in many areas. The challenge is that landlords are navigating an increasingly complex regulatory environment. The abolition of Section 21, ongoing EPC requirements, affordability pressures, and wider tax changes have created a landscape that many landlords, particularly smaller portfolio owners, are struggling to keep pace with.
As a result, some landlords are choosing to exit the market altogether, reducing housing supply when tenant demand is rising. Others are restructuring portfolios, incorporating into limited companies or investing in more specialist property types to maintain profitability. These are not always straightforward cases, and often fall outside traditional High street lending criteria.
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This is where specialist lenders play a crucial role. We are seeing more clients with complex income structures, multi-property portfolios, HMOs, semi-commercial units or refurbishment requirements – all areas where manual underwriting and flexible lending solutions are essential. Specialist lenders like us are designed to assess the bigger picture rather than relying on rigid automated models, allowing landlords to secure funding that supports long-term strategy.
For brokers, the changing market creates a significant opportunity to add value through education and guidance alongside securing finance. Landlords need advisers who understand both the legislative landscape and the financing options available to help them adapt.
Ultimately, the Renters’ Rights Act is accelerating the professionalisation of the buy-to-let sector. The landlords who remain are likely to be more commercially focused and more reliant on specialist finance solutions to navigate a changing market.
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Sheryl Kirk
Head of National Accounts
About Lendco
Lendco are a specialist BTL and Bridging lender, formed in 2018 with the aim of eradicating some of the frustrations experienced by intermediaries in the UK mortgage market. We understand what it means to be an intermediary and the challenges that can come when servicing professional property investors. We pride ourselves on making common sense lending decisions quickly.
