Paragon Mortgages, one of the most high-profile buy to let lenders, has given its summary of where the Renters Rights Act will change the private rental sector most.
In a statement to shareholders accompanying its latest performance figures, the company says its client base are large scale landlords, typically professional, with four properties or more, and possibly HMOs with multiple tenants.
It comments: “While it is clear that the changing economic environment and increasingly complex regulatory landscape has caused, and is causing, some landlords to step away from the PRS, our experience is that this reaction is concentrated amongst some smaller non-specialist amateur landlords, while our specialist customers remain committed to the sector.
“The experience of these professional landlords, their level of involvement with their lettings business and the diversification of their income streams across properties make them less vulnerable to cash flow shocks in the event of a downturn and better able to cope when faced with an adverse economic
situation impacting them or their tenants.”
The lender goes on to tell shareholders that the Renters Rights Act needs to be implemented fairly – in the interests of landlords as well as tenants – with adequate enforcement resources.
It continues: “Survey data suggests that around two thirds of landlords in the PRS claim to have a good awareness of the content of the Act, with a significant number considering that it will have a negative impact on their business, and a much larger number suggesting it will have a negative impact on the PRS as a whole.
“A large number suggested that the legislation will make them more selective about who they let to.”
Unveiling its full-year results for the year to 30 September 2025, Paragon’s loan book ended the period at £13.9 billion, up from £13.4 billion at the same point the previous year.
Annual redemptions on the loan book stood at 7% and new buy to let lending for the period was £1.49 billion, largely in line with the previous year, £782.3 million of which was at an EPC-rating of A to C.
Louisa Sedgwick, Paragon Bank Managing Director of Mortgages, says: “This is a strong set of results in challenging market conditions, and we are pleased to have supported thousands of landlords to provide much-needed new homes in the private rented sector.”
