In our earlier feature, we explored broker strategies through an insightful Buy-to-Let Interview with Liz Syms titled “Business Plan for Clients Produced by Brokers.” As we move into 2018, brokers must prepare for a shifting buy-to-let market, where regulatory pressure and policy change continue to shape the landscape for landlords.

Following a turbulent 2017 marked by tax changes and updates to lending criteria, advisers now face more than 15 ongoing government consultations. Each has the potential to impact landlord clients from portfolio rules to property standards. Staying ahead of these developments is key to maintaining financial resilience and advising clients effectively.

For guidance on income protection and policy planning, see our Protection and Insurance and Adviser Support Services resources.

Strategic Tax Planning for Financial Resilience

In 2018, significant tax reforms began reshaping how landlords manage mortgage interest deductions. At that stage, only 50% of finance costs could be offset against rental income, while the remaining 50% was restricted to relief at the basic 20% tax rate. This shift marked a key step in a phased change that would see all mortgage interest relief limited to 20% by 2020.

For mortgage advisers and property investors, these changes highlighted the urgent need for strategic tax planning and proactive financial resilience. Navigating such transitions effectively meant not only staying compliant but also preserving profitability.

Building resilience into client financial plans became increasingly important. Forward-looking advisers helped landlords reassess their investment structures, explore incorporation options, and consider income protection products to reduce exposure to rising costs.

To support this kind of resilience planning, advisers today benefit from robust back-office systems and compliance support provided through a strong mortgage network. Additionally, integrating relevant protection and insurance products, such as landlord income cover, helps further shield clients from future regulatory or market shocks.

EPC Regulation Changes for Buy-to-Let Landlords (Effective April 2018)

As of April 1, 2018, a major regulatory shift took effect in the buy-to-let sector: it became illegal to let or renew a tenancy on any property with an Energy Performance Certificate (EPC) rated below E. Landlords who fail to comply may incur civil penalties of up to £4,000.

This change directly affects landlords’ financial and mortgage resilience, particularly those who rely on consistent rental income to meet mortgage obligations. Mortgage advisers supporting property investors should ensure their clients are aware of and acting on these regulations.