Jeni Browne on a divided buy-to-let market and the growing broker opportunity in complex finance
A divided buy-to-let market is creating a clear opportunity for brokers prepared to move into complex finance, according to Jeni Browne (pictured top), sales and marketing director at Mortgage Finance Brokers.
Browne, who has worked with landlords across multiple market cycles, says the current climate is characterised by a sharp split in investor behaviour – with the majority in a holding pattern, but a more confident contingent moving quickly to take advantage of falling prices and rising rents.
"The landlords are very quiet in terms of transactions," she told Mortgage Introducer. "People are still buying properties, but nowhere near the levels that they were five years ago."
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Two types of landlord
The divergence in landlord sentiment is stark. While many investors are waiting to see how further regulatory and fiscal changes unfold, a more calculated segment is positioning itself to buy.
"There is actually a more bullish contingent of landlords who are looking at the market, particularly in the South East of the country, where house prices have come down year on year," Browne said. "And actually, rents are continuing to increase, and this is across the whole of the UK now."
That arithmetic is compelling some investors to act. Average UK private rents rose 3.8% in the 12 months to September to reach £1,393 per month, according to the Office for National Statistics (ONS). Landlords buying at reduced values and commanding higher rents than 12 months ago are finding the investment case has strengthened, even amid the wider headwinds.
"I can go out and buy a property which I would have paid more money for this time last year," Browne explained. “I'm getting more rent, however, for the same property, so I'm paying less and I'm getting more rent. Therefore, it represents a better opportunity now than it did one year ago."
The weight of accumulating costs
The majority of landlords, though, are better described as fatigued than optimistic. Browne points to the cumulative burden of regulatory and fiscal pressure as the defining feature of the current period.
The Renters' Rights Act, which came into force in May and represents the most significant overhaul of the private rented sector in a generation, has added operational complexity to an already challenging environment. Among its principal changes, the legislation abolished Section 21 no-fault evictions and moved all assured shorthold tenancies to periodic agreements.
Data shows landlords have continued to borrow despite the disruption brought by the Renters' Rights Act, with portfolio complexity deepening the need for specialist broker advice. Browne believes the full impact of the legislation has yet to materialise.
"I think it kind of launched, and then everyone got up and just got on with their day," she said. "I think the effects of it, it's going to be the court proceedings that's the biggie, and I don't think we're seeing the full impact of that yet."
Beyond the Renters' Rights Act, the growing weight of compliance costs is absorbing landlord margin without any visibility of what comes next. Selective licensing – a scheme through which local authorities require private landlords to hold a licence, typically costing around £1,000 per property, even where a property is not let as a house in multiple occupation (HMO) – is becoming more widespread across England. The government's landlord database, introduced alongside the Renters' Rights Act, carries a registration fee of £69 per property.
"If you've got 50 properties, that's thousands and thousands of pounds you've suddenly got to find," Browne said. "And it just keeps going. And there's no kind of, in return for all of these things, you get this back. There's nothing."
The sentiment among many landlords is one of frustration without an obvious exit ramp, because buy-to-let remains their primary business. "If you have a tough time in your job, you still have to kind of work around it and carry on," she said. "And that's what they'll do."
Where is the broker opportunity?
Despite the pressure, Browne is clear that landlords have consistently demonstrated an ability to pivot. When Section 24 – the restriction on mortgage interest tax relief for residential buy-to-let landlords, phased in from 2017 and now applied in full – fundamentally altered the economics of the sector, many investors moved to incorporate their portfolios into limited companies, shifted into HMOs, or reoriented their buying towards the north of England in search of stronger yields.
HMOs typically generate higher rental income than single-let properties of equivalent size, making them an increasingly attractive structure as margins tighten. The shift towards HMO and specialist finance has become central to how brokers are serving buy-to-let clients navigating a more complex landlord market.
"They do tend to be quite good at, here's the problem, so where do I go from here?" Browne said. "And a lot of them will pivot to try and kind of work around things, so they're quite a flexible bunch and quite resilient."
That adaptability is generating tangible opportunity for brokers. As landlords investigate alternative structures and asset classes – HMOs, semi-commercial property, development finance – brokers with knowledge in those areas are well placed to add genuine value. The Renters' Rights Act is continuing to reshape what buy-to-let clients need from specialist brokers, with the most effective brokers moving beyond rate into structural and tax advice. Browne cautions, however, against overreach.
"I think in terms of adding real value as a broker, being kind of really genned up on things like HMOs, semi-commercial, development finance – those sorts of things where the landlords are sort of looking to at the moment to try and diversify – that's a really good thing," she said. "But also recognising that we can't, as brokers, be jack of all trades."
She argues that brokers who build strong referral networks, rather than attempting to handle every product type themselves, will serve their clients better and protect their reputation in a market shifting towards complexity.
"Making sure you've got a really good team of people that you can simply refer things on to, so the client always gets the best kind of service and outcome, I think that's probably another thing that brokers need to be really leaning into at the moment."
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