Investors are changing their approach - and lenders should too

The buy-to-let market never stands still, but the pace of change in recent years has been remarkable. The days of the so-called ‘accidental landlord’, with one or two properties tucked away as a pension top-up, are fading fast. Regulation, tax and rising costs mean that lightly leveraged models no longer stack up in the same way.

In their place, professional landlords are stepping forward. And the shift is not just in who is investing, but in the types of assets they are choosing.

FROM TWO-UP TWO-DOWNS TO COMPLEX BLOCKS

Every week I speak to brokers who are placing deals that would once have seemed out of reach. Take a recent case: a broker supporting a client to refinance a 63-unit multi-unit freehold block (MUFB). A few years ago, that level of complexity might have made some lenders hesitate. Multiple tenancies, layered valuations and moving parts often created delays.

This time, though, the broker needed certainty against a hard deadline. By working directly with our underwriters and credit team, we structured the deal and completed within 36 hours of the offer being issued. That kind of collaboration shows what is possible when everyone is focused on the same outcome.

And it is not just MUFBs. Brokers tell me they are structuring deals for semi-commercial properties, larger HMOs and mixed-use schemes. These are not vanity purchases. They are deliberate strategies designed to build stronger, more diverse portfolios that can weather the inevitable peaks and troughs of the market.

WHAT THIS MEANS FOR BROKERS AND LENDERS

This is exciting, but it is not without challenges. Complex cases rarely fit neatly into criteria, which is why the partnership between broker and lender is so important.

It starts with understanding what matters most to the investor. In the MUFB case, the client’s priority was certainty. Working directly with decision-makers meant the structure could be agreed quickly and the deadline met with confidence.

Flexibility is just as critical. One of the biggest frustrations I hear from brokers is the “computer says no” approach. That does not work in the specialist market. The best outcomes come when a lender leans into complexity and finds a way to make the deal work.

Pricing plays a role too. Semi-commercial properties have too often been saddled with an unnecessary premium, even when the commercial element is minor. That is why earlier this year we aligned our standard buy-to-let rates to qualifying semi-commercial cases. If the fundamentals stack up, pricing should not be a barrier. Removing those obstacles helps brokers deliver more of the right solutions for their clients.

MATCHING MARKET EVOLUTION WITH LENDING EVOLUTION

The rental sector itself is shifting under our feet. The Renters’ Rights Bill will only accelerate the push towards professionalism. Many landlords are already reassessing their portfolios, raising capital for improvements or acquiring assets better suited to a more regulated future.

For brokers, this is a chance to step into a genuine advisory role: guiding clients through portfolio decisions while structuring funding that supports their long-term strategy. But that only works if lenders evolve too.

It is easy to say you support complex asset strategies. The real test is what happens when a case is on the table: how quickly you engage, how pragmatic you are when challenges arise, and how determined you are to see it through.

THE TAKEAWAY FOR BROKERS

As investors shift towards more complex, higher-yielding assets, the choice of lending partner becomes more important than ever. Brokers should look for lenders who thrive on complexity, who provide clarity when it matters, and who consistently deliver.

Because just as investors are changing their approach, lenders need to change theirs too. The brokers who choose partners willing to embrace that change will not only close today’s deals, but build the trusted, long-term relationships that keep clients coming back.