Could the Act see a big shift in landlord profiles?
It remains to be seen what the eventual impact of the legislation on the landlord and buy-to-let sectors will be – but Arena said a number of noteworthy trends are already at play even before the changes come into effect.
“We’re not seeing a reset in landlord behaviour, but more an acceleration of trends that were already active,” he said. “A focus on yield, diversification, SPVs and improving the quality of stock continues.
“Insurance and other de-risking tools are moving centre stage too. So yes, we’re likely to see a gradual tilt towards more professional ownership – but that’s an evolution of continued sector reform and market trends.”
Euan Stewart of Perth Mortgage Centre, meanwhile, said a shift toward more professional portfolio landlords was “broadly positive” for the industry because it would raise standards, improve consistency and make enforcement more effective – but also questioned the likely impact on other landlords.
“We can’t ignore the pressure this puts on smaller landlords, who make up a significant share of overall rental stock,” he said. “If too many of them decide the new regulatory environment isn’t worth the effort, we risk reducing supply at exactly the moment demand is rising. That would be counterproductive to the aims of the Act.”