Landlords appear to be responding to the Renters’ Rights Act by strengthening checks at the beginning of a tenancy rather than simply leaving the market. August survey findings show that around four in 10 landlords have tightened referencing or affordability checks, with the proportion reported higher in England.
This adds to a more segmented buy-to-let environment. HMO demand and potentially stronger yields remain attractive to some investors, but tax, relief restrictions, regulation and property-specific operating costs continue to reshape viability. Advisers should avoid treating buy-to-let as a single market and instead assess client objectives, property type, tenant profile, finance structure and exit strategy.
AI-supported referencing, fraud detection and portfolio analytics may reduce administration, but landlords and advisers remain responsible for lawful, fair and proportionate decision-making. The FCA’s recent action against several Annex 1 lenders over anti-money-laundering controls is also a reminder that technology does not remove the need for effective due diligence.