The biggest overhaul of the lettings market for 40 years is under way as the Renters’ Rights Act (RRA) took effect at the start of the month, creating both risks and opportunities for brokers.
Among its measures, the act brings in a ban on no-fault evictions, restrictions on rent increases, rolling tenancies for all, an end to bidding wars and additional offences against which landlords can be challenged.
Many stakeholders have predicted that landlords will exit the sector in droves as a result of the reforms.
The new law has created a revenue opportunity for brokers and the potential for more introducer agreements
One such forecast is from Pepper Money, based on a poll of landlords, which suggests the number of homes available to rent will contract by 220,000 following the changes this year.
Others believe the impact will be palpable, but not quite so dramatic.
Connect for Intermediaries chief executive Liz Syms says: “I don’t think we will see the mass exodus that some have predicted, but we are certainly seeing landlords reassess their portfolios more carefully.
“It’s another layer of regulation at a time when landlords are already dealing with higher finance costs, tax changes and increasing compliance requirements.
“For some smaller or more ‘accidental’ landlords, that may be the final push to sell, but professional landlords are more likely to adapt, review yields, restructure borrowing and focus on properties that remain viable.”
Advisers, too, should consider how to adapt their approach to better position themselves for the new era of buy-to-let, says Syms.
We saw an absolute explosion in rent protection demand as soon as the bill cleared the final stages
“For brokers, the changes create a real opportunity,” she says. “Landlord clients will need more than just a product recommendation; they will need strategic support.”
Brokers could look to expand the services they provide to clients by offering portfolio reviews; giving advice on refurbishment finance, houses in multiple occupation, multi-unit freehold blocks, bridging, commercial investment, protection and landlord insurance, adds Syms.
The knowledge gap among landlords grappling with the new rules presents an opportunity for brokers to take on a wider educational role, according to research consultancy Pegasus Insight.
It found that only one in five landlords surveyed in March felt they were fully aware of all the details of the RRA.
The majority were only partially aware, potentially leaving themselves at risk of non-compliance and exposed to significant fines.
For some smaller or more ‘accidental’ landlords, this may be the final push to sell
Pegasus Insight managing director Mark Long says: “Brokers could lean on published resources and guidance, from the National Residential Landlords Association, for example, to offer clients easy-to-digest, practical guides.
“There is also potential to run a paid webinar for clients, turning regulatory complexity into a direct revenue stream.”
Long believes that brokers are also well placed to build a curated network of trusted professionals for their landlord clients, and to earn from referrals.
“The legislative changes, particularly the abolition of Section 21, the new grounds for possession and the strengthened tenant rights framework will drive demand for specialist legal advice, and brokers who can refer clients to trusted solicitors will add tangible value beyond the mortgage transaction,” he says.
“Compliance-focused tech tools, which help landlords manage tenancy documentation, rent reviews and maintenance obligations within the new regulatory framework, represent another growing referral category,” Long adds.
Boon Brokers managing director Gerard Boon agrees.
There is scope for brokers to broaden their service offering in a way that feels practical rather than forced
“The new law has created a revenue opportunity for brokers and the potential for more introducer agreements, with a range of experts who can support landlords through the changes,” he says.
“The quality of advice is now more important than ever as the repercussions for landlords following tribunal claims may be significant.”
Boon says he is already noticing a shift by portfolio landlord clients into new areas, where their lack of experience could mean the support of their broker is even more valuable.
“They are moving away from low-yield properties with longstanding tenants like family homes, and investing in more temporary accommodation options like student lets or holiday lets,” he says.
Demand for rental insurance is another commercial opportunity for advisers. Goodlord reported a 41% increase in demand in the final four months of last year, just after the bill received royal assent, as landlords looked for ways to reduce their risks.
Brokers could lean on published resources and guidance to offer clients easy-to-digest, practical guides
This creates scope for brokers to integrate rental insurance more consistently into their advice process.
Goodlord managing director of insurance Oli Sherlock says: “The passing of the bill into law really focused minds across the sector.
“There had been so many false starts over the years, it took royal assent for lots of agents to truly step up their preparations.”
Sherlock adds: “We saw an absolute explosion in rent protection demand as soon as the bill cleared the final stages; it was like a massive alarm had sounded across the market.”
Landbay sales and distribution director Rob Stanton also believes there are upsides for advisers who are willing to adapt.
“There is scope for brokers to broaden their service offering in a way that feels practical rather than forced,” he says.
Professional landlords are likely to adapt, review yields, restructure borrowing and focus on properties that remain viable
“That might include guiding landlords towards reliable compliance resources, helping them understand new documentation requirements such as tenant information sheets, or simply building compliance prompts into regular portfolio reviews.”
As the rules bed in, some landlords will want to restructure their portfolios or shift their investment strategy, and brokers will be in a prime position to support this, says Stanton.
“That could mean more remortgage activity, changes in ownership structures or a shift towards different property types.”
This article featured in the May 2026 edition of Mortgage Strategy.
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Disclaimer: This story is auto-aggregated by a computer program and has not been created or edited by finopulse.
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