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.”