Confidence in the buy-to-let market has actually increased, with the Renters’ Rights Act bringing transparency and certainty for both landlords and tenants from this Friday, according to Jodie Spreadbury, senior mortgage and protection broker at The Mortgage Broker. Her comments come as many companies report an increase in landlords leaving the market.
Spreadbury said she had witnessed renewed interest following a quieter period for landlords. “We experienced a lull in landlord activity in recent years, but over the past 18 months, the buy-to-let market has become a prominent topic of interest again,” she said.
Greater certainty now rules are clear
She attributed the increase to greater market certainty now that the rules are clear. “With a more consistent market and growing confidence, property investment is once again attracting attention. The sector has navigated various tax changes, tenancy reforms – now fully confirmed and implemented – and more stable interest rates. Overall, confidence in the market remains high.”
She claimed that the Renters’ Rights Act (RRA) changes aren’t deterring new or more experienced landlords and that even challenges such as the end of Section 21 aren’t as daunting as they appear.
“One of the key features of the RRA is the banning of no-fault evictions. However, if a tenant takes care of the property and pays their rent on time, these evictions should rarely be necessary.”
Other changes also helped to bring clarity, she said. “Landlords typically choose to sell their properties only when the investment no longer fits their financial plans or objectives, not arbitrarily. The introduction of annual rent reviews brings transparency and certainty for both landlords and tenants.”
Focussed investment
But where landlords put their money should be considered carefully, she advised. “With stricter Energy Performance Certificate (EPC) regulations on the horizon, some landlords are instead prioritising improving their existing properties to meet the new standards rather than acquiring further stock.
“In this evolving landscape, landlords should focus on acquiring and maintaining quality properties with high EPC ratings to comply with regulations and attract reliable, long-term tenants.”