Advisers guiding BTL landlords through regulation, tax and product shifts in 2026

Many will review rents before the new rules start, and some will take a harder line on tenancies going forward. The ability to regain possession is going to become tougher, and some landlords will not want to ‘carry’ tenants who they may feel could cause problems later.

With all this about to land, it seems likely that landlords are going to seek out advisers to help them with what they should do next, what the implications for their portfolios might be, and what they could do next to comply with the new rules and continue to run profitable investments.

An ongoing push towards limited company

What’s certain post-Budget is that future tax changes will continue to drive how the sector is shaped. The extra 2% on property income tax for personal ownership starts in 2027, but advisers will find many landlords planning around it well before then.

The direction however is already pretty clear. New purchases are already predominantly made through limited companies — our last Rental Barometer revealed 81% of all purchase applications received by Fleet were for limited company borrowing — and that share will climb further through 2026 and into 2027.

Trackers may return to the conversation

If the Bank of England trims rates again in December — I am writing this prior to the 18th December MPC meeting — and if Bank Base Rate does head towards the mid-threes by late 2026, then tracker product conversations could come back.

Trackers are by no means the overwhelming product choice for landlords for obvious reasons, but if further rate cuts are on the horizon, then a tracker could be a more compelling option.

We could see the door open for professional investors with some headroom to use short-term trackers with no early repayment charges. The logic is simple. Take the tracker now, then switch to a fix once the market settles at a lower rate.

If affordability works, and if the client understands the risks, then it could be a sensible option that many have ignored up until now. Advisers may find themselves explaining this more often in 2026 as the case for trackers potentially strengthens.

Fewer casual landlords, more professional portfolios?

The market has long predicted landlord exits. However, we know that in truth, where this is taking place, it’s mostly ‘accidental landlords’, who may have fallen into BTL rather than by design. Selling off a single property as a result of rising costs, new rules and lower tax relief may well continue but, at the same time, there will be plenty who maintain a presence.

However, it’s also obvious that the rise of the professional and portfolio landlord player will continue and increasingly remains the bedrock of the market. These landlords know their numbers and see BTL as a long-term strategy, not a side project.

Areas to focus on

So, what could be the key areas for advisers to focus on in 2026?

First, helping landlords plan for the RRA rule changes and making sure their tenancies/rents/portfolios are in good order before May. Second, making sure clients understand the tax direction of travel and what that means for ownership structure. Third, keeping an open mind on product choice, including trackers, which may suit more clients if rates keep softening.

2026 will not be a quiet year. Advisers who prepare now will start January in a strong position.