BTL reform not the end of the sector but a shift, panel says: BSS26

Speaking at yesterday’s Building Societies Show, panellists said the changes mark a significant transition for the market, but not its decline, with advisers and lenders needing to step up on education, support and product innovation.

The panel consisted of Daniel Clinton (head of specialist lending, Nationwide), Mark Long (managing director, Pegasus Insight), Aneisha Beveridge (research director at Hamptons and Connells Group) and Kevin Purvey (director of mortgage distribution at Coventry Building Society), chaired by event media partner Square 1 Media’s Paul Hunt.

Beveridge pointed out that landlord readiness remains uneven, with smaller landlords particularly exposed.

“Landlord preparedness is a very mixed bag. Larger portfolio landlords tend to be well prepared, but ‘accidental landlords’ with one or two properties are often not. This is a monumental change, and there will be landlords who are caught off guard,” she said.

Long agreed, adding that while awareness is relatively high, understanding is lacking.

“While 77% of landlords say they are aware of the Renters Reform Act, only one in five understand all of the details. That raises real concerns about compliance in the early stages,” he said.

Despite this, the panel said the reforms should be seen as an evolution rather than a contraction of the sector, with Beveridge stressing that landlord activity remains resilient.

“It’s far from the end of the sector, despite what some headlines suggest. Landlords are adapting: incorporating, switching to interest-only and taking a long-term view,” she said.

Panellists also highlighted the role of lenders and brokers in supporting landlords through the transition, particularly as unintended consequences begin to emerge.

Clinton said stronger tenant rights could create operational challenges.

“With tenants having greater rights, they may feel more empowered to challenge rent increases or evictions. If court processes remain slow, that could lead to longer possession timelines and potentially show up as arrears,” he said.

Purvey added that the reforms should be viewed as an ongoing process, with further regulatory changes still to come.

“Not everyone will be ready on day one. This is the start of a journey, not the end, and there are further changes ahead, including the landlord portal and Ombudsman scheme,” he said.

Looking ahead, the panel said the market is likely to become more professionalised, with larger portfolio landlords gaining share.

“We’re seeing a gradual shift towards a more concentrated, professional landlord base, but it remains a very resilient market, with one in five households in the private rented sector,” Purvey said.

At the same time, opportunities remain for brokers and lenders willing to adapt, particularly as demand for finance and portfolio restructuring continues.

“There are both opportunities and threats. As regulation evolves, lenders who can support more complex cases and respond quickly to change will be best placed to succeed,” Clinton said.

Paul Hunt, co-founder of Square 1 Media, who chaired the session, said:

“With the Renters Rights Act primarily coming into place from 1^st May, a session covering this, plus the wider buy-to-let market was always going to be popular with brokers in the room and we weren’t disappointed.

“The private rented sector remains a vital part of the housing and lending landscape and it was encouraging that all the panellists agreed, that despite numerous challenges faced and to be faced by investors, there is still growth expected with remortgage opportunities and new investors still entering the market.”

The Building Societies Show, which took place on Tuesday 21 April at Coventry Building Society Arena, brought together 37 building societies, brokers and senior decision-makers for a day focused on supporting brokers and securing better outcomes for clients, with Knowledge Bank, Mortgage Brain and One Mortgage System acting as headline sponsors.