She says the combined effect of policy changes and rising compliance demands is pushing investors to treat property less as a side activity and more as a structured business.<\/p>\n
\u201cWe\u2019re moving from a market where informal approaches could work to one where structure and professionalism are essential,\u201d she said. \u201cInvestors who understand their numbers and treat property as a business will continue to perform strongly.\u201d<\/p>\n
Several regulatory and policy changes are currently converging on the sector at the same time, including the 5% stamp duty surcharge on additional properties, the rollout of Making Tax Digital and the Renters\u2019 Rights Act expected to take effect this year. Landlords are also preparing for further tax changes affecting rental income in the coming years.<\/p>\n
Niziol told Mortgage Solutions that one of the main impacts of these changes is the consolidation that is happening across the private rented sector.<\/p>\n
She says that as some smaller landlords exit the market or reduce their exposure, investors with stronger financing structures and operational systems are acquiring properties and repositioning them to improve their returns. In many cases, this involves converting properties into houses in multiple occupation (HMOs) in areas with strong student or professional demand, restructuring assets as multi-unit blocks (MUBs), or implementing more effective property management systems.<\/p>\n
At the same time, she adds, the investors\u2019 mindsets are shifting away from straightforward expansion towards portfolio optimisation.<\/p>\n
Five years ago, she says, many landlords focused on scaling portfolios quickly, targeting 10, 20 or even 50 properties. Increasingly, though, investors are now examining how each asset performs within an overall portfolio.<\/p>\n
They are analysing yields property by property, factoring in mortgage costs, maintenance, compliance requirements and tax liabilities. Properties that fail to deliver strong cash flow after these costs are deducted are increasingly being reassessed or sold.<\/p>\n
Niziol also says the increasing emphasis on yield and performance is influencing where investors make their purchase.<\/p>\n
Rather than concentrating primarily on London and the South East, many landlords are now looking further afield to the regional markets where rental yields are stronger relative to their purchase prices. Cities and towns in the Midlands and the North, in particular, are attracting interest from investors seeking stronger, income-focused returns rather than relying on capital appreciation.<\/p>\n
Despite greater regulatory complexity, Niziol remains optimistic about the long-term future of the market, pointing to continued demand for rental housing across the UK.<\/p>\n
She points to average UK house prices, which rose by 2.4% in the year to December 2025 (Office for National Statistics) and the market\u2019s housing continuing resilience, despite the tighter borrowing conditions.<\/p>\n
For investors, the underlying supply and demand imbalance in the rental market remains supportive. The difference now, Niziol suggests, is the level of financial discipline and operational structure required to capture the opportunity.<\/p>\n
For landlords assessing their next move, her advice is pragmatic: portfolios must be treated as properly costed businesses, with clear strategies and realistic assumptions about income, compliance and long-term returns.<\/p>\n","protected":false},"excerpt":{"rendered":"
The UK\u2019s buy-to-let market is entering a new phase as tighter regulation, tax changes and higher borrowing costs are reshaping how landlords operate and invest, according to Michelle Niziol, Founder and CEO of estate agency firm, IMS Property Group. She says the combined effect of policy changes and rising compliance demands is pushing investors to… Read more »<\/a><\/p>\n","protected":false},"author":4233,"featured_media":6086510,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"inline_featured_image":false,"footnotes":""},"categories":[59,2,4],"tags":[773],"class_list":["post-6107403","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-trending-news","category-buy-to-let-landlords","category-investment","tag-renters-rights-act"],"acf":[],"_links":{"self":[{"href":"https:\/\/www.buyassociationgroup.com\/en-gb\/wp-json\/wp\/v2\/posts\/6107403","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.buyassociationgroup.com\/en-gb\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.buyassociationgroup.com\/en-gb\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.buyassociationgroup.com\/en-gb\/wp-json\/wp\/v2\/users\/4233"}],"replies":[{"embeddable":true,"href":"https:\/\/www.buyassociationgroup.com\/en-gb\/wp-json\/wp\/v2\/comments?post=6107403"}],"version-history":[{"count":1,"href":"https:\/\/www.buyassociationgroup.com\/en-gb\/wp-json\/wp\/v2\/posts\/6107403\/revisions"}],"predecessor-version":[{"id":6107404,"href":"https:\/\/www.buyassociationgroup.com\/en-gb\/wp-json\/wp\/v2\/posts\/6107403\/revisions\/6107404"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.buyassociationgroup.com\/en-gb\/wp-json\/wp\/v2\/media\/6086510"}],"wp:attachment":[{"href":"https:\/\/www.buyassociationgroup.com\/en-gb\/wp-json\/wp\/v2\/media?parent=6107403"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.buyassociationgroup.com\/en-gb\/wp-json\/wp\/v2\/categories?post=6107403"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.buyassociationgroup.com\/en-gb\/wp-json\/wp\/v2\/tags?post=6107403"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}