Commercial Director - Property
The Renters Reform Act represents a structural shift in how landlords operate in the private rented sector. For brokers, the key opportunity lies in understanding how the reforms affect risk, cash flow, compliance costs and lender appetite, and reflecting this in funding advice.
Landlords will increasingly value brokers who can:
• Anticipate the financing impact of periodic tenancies and rent controls
• Support compliance-driven refurbishments with suitable lending
• Stress-test affordability against more regulated rental income
• Take a consultative, portfolio-level view rather than a transactional one
As regulation increases, brokers who demonstrate insight into the operational realities of the new regime will strengthen relationships and improve outcomes for landlord clients.
Renters Reform Act: what brokers need to understand to support landlord clients
The Renters Reform Act is set to deliver the most significant reform of the private rented sector (PRS in England) in decades. As it approaches go-live, brokers will be increasingly relied upon to help landlord clients navigate not just legislative change, but the financial and strategic implications that follow.
Understanding where regulation intersects with lending, valuation and portfolio planning will be key to delivering best-in-class broker support.
Abolition of Section 21 and possession risk
The removal of Section 21 “no-fault” evictions places greater reliance on strengthened Section 8 grounds. While legal advisers will handle the detail, brokers should understand how possession risk feeds into arrears exposure, void assumptions and lender confidence.
Landlords are likely to focus more heavily on:
• Tenant quality and referencing
• Professional property management
• Liquidity planning to manage delays in possession
For brokers, this context matters when structuring finance, particularly where rental income is central to affordability.
Periodic tenancies and income predictability
The move to open-ended periodic tenancies replaces fixed terms, increasing flexibility for tenants but reducing certainty for landlords.
Brokers should consider:
• How variable notice periods affect cash flow modelling
• The importance of contingency funding
• Whether existing loan structures remain appropriate
This is particularly relevant for short-term funding, refinancing strategies and portfolio landlords managing multiple properties.
Rent increases and affordability modelling
Under the new framework, rent rises will be limited to a formal annual process, with greater scope for tenant challenge. While this creates stability, it may also slow rental growth.
Brokers can add value by:
• Stress-testing affordability at realistic rent levels
• Avoiding over-reliance on future rental uplifts
• Aligning borrowing with sustainable income assumptions
In a higher-rate environment, this disciplined approach will resonate with both landlords and lenders.
Property standards and funding compliance works
The extension of the Decent Homes Standard to the PRS could require capital investment, particularly for older stock.
This presents a clear advisory opportunity for brokers, including:
• Funding improvement works ahead of refinance
• Using short-term finance to bridge compliance gaps
• Aligning refurbishment with long-term portfolio plans
Proactive brokers can help landlords turn compliance into an asset-enhancing exercise rather than a barrier to funding.
Increased regulation and professionalisation
The introduction of a PRS ombudsman and digital property portal signals a more transparent and enforceable regulatory environment. Lenders are likely to favour landlords who are organised, compliant and professionally advised.
Brokers who understand this shift will be well placed to support landlords as expectations rise across the sector.
