Renters Overlook Mortgage Options: What London Landlords Need to Know

Understanding the Study and Its Relevance to Landlords

The Building Societies Association’s latest research highlights a significant gap in renters’ knowledge about mortgage options. Nearly half of aspiring homebuyers have never consulted a lender or broker and many are unaware of low or no-deposit schemes that could accelerate their path to ownership. Two-thirds of renters informed about these schemes felt they could buy sooner than anticipated.

While this study does not impose new legal obligations on landlords or agents, it has important implications for those managing rental properties in London, where high property prices and complex market conditions prevail.

Why This Matters for London Landlords

Landlords often encounter tenants who want to buy property but face financial or knowledge barriers. Lack of awareness about mortgage products means tenants may delay purchasing, extending their rental periods but potentially increasing turnover and uncertainty.

• Single-unit landlords might see longer tenancies but also experience renters who lack confidence in their buying options.
• Portfolio landlords and HMO operators may notice mixed impacts, with some tenants staying longer while others move on unpredictably.
• Accidental landlords—those who inherited or purchased property unintentionally—should note tenants could transition to ownership sooner if properly supported.

Practical Implications Across Operations and Tenant Relations

• Tenant Communication: Proactively discussing mortgage options with tenants can build trust and show landlord support beyond rent collection.
• Referral Networks: Connecting with mortgage brokers or building societies offers tenants reliable advice and improves homeownership chances.
• Retention Strategies: Helping tenants explore buying options may encourage responsible tenancy and positive references.
• Market Awareness: Staying informed on schemes like Help to Buy or shared ownership ensures landlords can guide tenants accurately.

Recommended Actions for Landlords

1. Educate Yourself: Familiarise yourself with mortgage schemes available in London, including low or no-deposit options and government-backed assistance.
2. Inform Tenants: Create guides or newsletters summarising mortgage options and how to access professional advice.
3. Build Partnerships: Reach out to local mortgage brokers/building societies to arrange informational sessions or referral paths.
4. Stay Updated: Monitor updates from the Building Societies Association, UK Finance, and government housing departments.
5. Tailor Communication: Consider tenant profiles—singles, families, sharers—and customise advice.

Addressing Different Landlord Profiles

• Single-Unit Landlords: Use tenant meetings to explore buying intentions and share mortgage information.
• Portfolio Landlords: Incorporate mortgage advice signposting into tenant onboarding.
• HMO Operators: Provide broad mortgage information and encourage personalised advice.
• Accidental Landlords: Understand tenant aspirations to anticipate tenancy duration and manage accordingly.

Next Steps to Implement

• Schedule a meeting this month with a local mortgage broker to discuss collaboration.
• Draft a tenant newsletter section on buying options by next rent review.
• Review tenancy agreements to include encouragement for independent mortgage advice.

How Rentals & Sales Can Support You

We offer tailored portfolio reviews assessing tenant profiles and turnover risks tied to buying aspirations. Our compliance audits ensure tenant communications meet best practice, and we assist with pricing strategies informed by tenant market trends. Contact us to navigate these landlord-tenant dynamics confidently.

Compliance Disclaimer: This article does not constitute legal advice. Landlords should consult qualified professionals for specific compliance or legal matters.