Okay, so we might be jumping the gun with this one. After all, whilst Renters’ Reform is set to happen towards the end of this year (or the beginning of 2026), it hasn’t happened yet.
However, as a Maidenhead mortgage broker, our view is that it’s better to be prepared as early as possible.
Now, if you’re a landlord, or in the process of becoming one, then the chances are that you’re aware of Renters’ Reform.
But just in case you aren’t, let’s take a look at it.
What is Renters’ Reform?
Renters Reform is series of legislative changes that seek to create a fairer private rental sector for tenants by improving housing standards.
The Renters’ Reform Bill was introduced in 2023 with the changes coming into effect in the near future.
The key changes are as follows:
| Section 21 abolished No more ‘no fault’ evictions. Landlords will now need to give a valid reason to end a tenancy. | Section 8 strengthened Landlords will be required to use one of the grounds for eviction from Section 8 to end a tenancy. | End of fixed-term tenancies ALL tenancies will become rolling. No more 6-month, 12-month or two-year tenancies. |
| Decent Homes Standard The standard synonymous with social housing will now be applied to the private rental sector. | The Property Portal Landlords will need to register to a central national database, which will be in place to evidence compliance. | Private Renters’ Ombudsman Tenants will now be able to settle disputes out of court. |
What does Renters’ Reform mean for buy-to-let mortgages?
As it’s not yet happened, we don’t know exactly how it will unfold in the context of applying for a buy-to-let mortgage. However, there are a number of things that could happen, which landlords might want to consider.
Here are three points that our team of Maidenhead mortgage advisers have selected.
- Mortgage approval criteria
As the framework for private rentals becomes more robust and structured, there is a chance that UK buy-to-let mortgage lenderstighten up their criteria for lending.
- Buy-to-let mortgage interest rates
As buy-to-let standards increase, so too could buy-to-let mortgage interest rates as a way in which to offset any perceived risks – particularly during the transition from a pre- to a post-Renters’ Reform era.
- Choice of lenders
As the criteria for becoming a landlord becomes tighter, there is a chance that the pool of lenders – and the pool of buy-to-let mortgage products – may shrink.
Our view
When it comes to getting a buy-to-let mortgage after Renters’ Reform comes into effect, there are a lot of unknowns.
However, what is certain, from our perspective at least, is that the benefits of using a mortgage broker to get a buy-to-let mortgagewill become clear. After all, there will be more considerations to make and more legislation to navigate, all of which our team of mortgage brokers in Maidenhead will be able to help with.
Whilst the three points outlined here are only possibilities at this stage, it’s highly likely that landlords will benefit from using a mortgage broker once the changes become law given the additional complexities associated with the reform.
If you are due for a buy-to-let remortgage any time soon, then our recommendation would be to get the ball rolling now in order to take advantage of the current rates, which, not long from now, may well be preferential rates.
We’re here to help
If you have any questions, concerns or would simply like more information on Renters’ Reform and buy-to-let mortgages, then get in touch with our team of Berkshire mortgage advisers. You can reach us on 01628 560820 or by emailing enquiries@altonmortgages.co.uk.