Property registration, tax changes and the next landlord conversation

One of the points I have been making to advisers lately is that today's buy-to-let market is becoming increasingly professional, which means landlords have to think much more carefully about how they own, finance and manage their properties.

That is particularly relevant following the latest government guidance on property registration under the Renters' Rights Act, which arrived alongside the announcements made in last month’s Budget.

For mortgage advisers, these developments provide an excellent opportunity to contact landlord clients, to share useful information and to open up conversations about their finances, borrowing arrangements and future investment plans.

Importantly, those conversations should not be restricted to landlords approaching the end of their existing mortgage deals, because the changes taking place across the PRS have implications for every landlord.

A reason to contact every landlord

The government has now published further guidance on the new property registration service, including the information required and the responsibilities involved in registering privately rented properties.

While registration is ultimately a matter for landlords and their letting or managing agents, there is nothing preventing mortgage advisers from sharing this information with their clients and encouraging them to prepare for the requirements.

Indeed, I would argue advisers should be doing exactly that, particularly when the Renters' Rights Act is bringing significant changes to the way landlords operate and the responsibilities they face.

At Fleet, we have developed dedicated Renters' Rights Act resources for advisers, providing information and support which can be used when communicating with landlord clients about the changes and what they mean in practice.

However, I think the opportunity goes considerably further than simply circulating the latest government guidance, because the timing of this announcement also coincides with some important changes to landlords holding properties in their individual names. 

The Budget adds another dimension

Last month’s Budget confirmed a further 2% increase in property income tax rates from April 2027, affecting individual landlords across England, Wales and Northern Ireland.

For those landlords, this means another potential reduction in net rental income and profitability, at a time when they are already managing higher mortgage payments, maintenance costs and the financial implications of new regulatory requirements.

It therefore makes sense for advisers to use the latest registration guidance as an opportunity to ask clients whether they have considered the Budget's implications for their portfolios and whether their existing financing arrangements remain appropriate.

This might involve reviewing current mortgage products, considering future refinancing requirements or discussing whether additional borrowing could be needed to meet property improvement and compliance costs.

It could also open up a conversation about whether the landlord's current ownership structure remains the most suitable option, particularly where properties are held personally rather than through a limited company.

Of course, moving properties into a corporate structure is not necessarily straightforward or appropriate for every landlord, with potential tax liabilities, transaction costs and mortgage implications all requiring careful consideration.

However, advisers can play an important role in identifying when such a review might be worthwhile, working alongside specialist tax advisers and accountants to ensure clients understand the financial and borrowing implications before making decisions.

Different landlords, different conversations

At a recent expo panel appearance, I talked about three broad groups of landlords operating in today's market, and I think the latest developments demonstrate why understanding those differences is so important.

We have accidental landlords who may be considering whether they want to remain in the sector, landlords who are looking to grow their portfolios, and established professional investors who are continually assessing how to make their existing holdings work more effectively.

Each group will approach the latest regulatory and tax changes differently, which means advisers need to understand what their clients are trying to achieve before discussing potential financing solutions.

For a landlord considering retirement from the sector, the conversation might focus on the ways and means such an exit can be achieved, while someone looking to expand may want to consider how future purchases should be structured and financed.

For professional portfolio landlords, the emphasis could be on reviewing the performance of individual properties, assessing refinancing opportunities and ensuring their overall borrowing arrangements remain suitable for the market in which they now operate.

There is no single answer which works for every landlord, and that is precisely why the mortgage adviser role remains so important.

Don't wait for the next remortgage

Despite some recent headwinds, and more to come following the Budget, I remain positive about the future of buy-to-let, particularly as – even in this market – the sector continues to attract landlords who understand property investment requires careful planning, financial awareness and a long-term commitment.

However, advisers should not underestimate the value of maintaining regular contact with clients between mortgage transactions, especially when Government announcements, as we’ve seen recently, provide such clear reasons to reopen conversations.

The latest property registration guidance is useful information to share, but combined with the Budget's tax changes, it also provides an opportunity to discuss how landlords intend to manage, finance and potentially grow their portfolios.

For advisers, the message is that the next valuable landlord conversation does not have to begin with a mortgage product reaching maturity, and it may well lead to important financial decisions long before the next refinancing date arrives.