As landlord compliance pressure mounts, brokers must do more than arrange the mortgage
The mortgage broker's job description is changing, and the Renters' Rights Act is one of the forces driving that shift.
The legislation, which came into force on 1 May, has placed landlords under sustained compliance pressure – abolishing Section 21 no-fault evictions, replacing fixed-term tenancies with rolling periodic contracts, and introducing new restrictions on rent increases and advance payments.
For many landlords, the practical demands of implementing those changes have proved more challenging than the rules themselves, creating a growing need for guidance that goes beyond what a single professional can provide. New research from Aviva, which surveyed more than 500 UK landlords and property-sector decision-makers between 21 May and 1 June found 94% of landlords have already changed how they run their property business in response, a figure that underlines just how far-reaching the Act's impact has been.
That shifting landscape is reshaping the role of the buy-to-let broker. Louis Mason (pictured top), director at Oportfolio in London, argues that a compliance-heavy environment is pushing brokers toward a broader advisory role that extends well beyond the transaction itself. The Aviva research adds weight to that view, with insurance brokers and providers currently the most common source of regulatory information for landlords, cited by 31% of respondents, a gap Mason believes the mortgage sector has yet to adequately fill.
"There's definitely an opportunity for mortgage brokers to do more, although we also need to be clear about where our expertise ends," Mason told Mortgage Introducer. "A good broker shouldn't simply arrange the mortgage and disappear until the fixed rate expires. If regulation changes the costs, risks or viability of a client's portfolio, we should be having those conversations and helping them understand the financial implications, while directing them to appropriate legal or tax specialists where necessary."
Is a landlord exodus really coming?
The scale of the challenge facing the private rented sector has sharpened debate about whether significant numbers of landlords will leave the market altogether. A tracking survey by the National Residential Landlords Association (NRLA) found that around a quarter of landlords are considering selling up in response to the Renters' Rights Act, a figure that aligns with separate research by LegalforLandlords, which found 24% of landlords intend to leave the market entirely, while a further 13% expect to reduce the number of properties they let.
Mason said the threat should not be dismissed, but he cautioned against overstating it. "I wouldn't call it an exodus yet, but the threat shouldn't be dismissed. We're seeing a market that's becoming increasingly professionalised. Some smaller or accidental landlords may decide the additional regulation, taxation and financing costs simply aren't worth the return anymore, while experienced portfolio landlords are more likely to adapt."
The structural consequence of that shift is already visible. Regulatory and tax changes are pushing landlords towards limited company ownership at pace, with one in five landlords now holding rental properties through a limited company, a share that has been rising sharply since 2020. Mason said that trend has direct implications for the buy-to-let mortgage market. "If significant numbers do sell, you could see fewer rental properties available while the remaining stock becomes increasingly concentrated among professional landlords. For the buy-to-let mortgage market, that potentially means fewer casual borrowers but greater demand for more specialist and limited-company lending."
What the changing role looks like in practice
The regulatory timeline is not easing. A private rented sector database is due to roll out regionally from this autumn, and a mandatory landlord ombudsman scheme follows in 2028. Each adds further administrative weight to a sector already absorbing the demands of the Renters' Rights Act itself.
For brokers, Mason said that pressure creates both a responsibility and an opportunity. Brokers have been urged to help landlords navigate an increasingly complex set of buy-to-let challenges – from refinancing decisions to portfolio restructuring – as the economics of buy-to-let shift. Mason's view is that the broker's position at the centre of those conversations is a competitive advantage the sector has not yet fully exploited.
"The broker's role is becoming much broader," he said. "We're increasingly having conversations about portfolio structure, limited-company borrowing, refinancing, cashflow and how regulatory changes might affect future investment decisions."
He was clear, however, that broadening the role does not mean overreaching it. "We aren't lawyers, accountants or compliance advisers, and brokers shouldn't pretend to be. But we are often one of the professionals landlords speak to most regularly." The buy-to-let market is increasingly split between professional investors and smaller landlords heading for the exit, and brokers who can connect the dots across mortgage, tax, and compliance decisions will be best placed to serve the clients who remain.
"Our job is increasingly to connect the dots, making sure the mortgage still works within the wider investment strategy and recognising when specialist advice is needed."
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