Why Gulf residents need to adapt to the UK’s evolving BTL landscape – Hamidian

However, with the first phase of the UK government’s flagship Renters’ Rights Act in force since 1 May, both existing and prospective Gulf landlords will need to ensure they fully understand the impact of the legislation to continue benefitting from the UK market.

The reforms mark a significant shift in the private rented sector, including the move from fixed-term assured shorthold tenancies (ASTs) to rolling assured periodic tenancies, the abolition of Section 21 ‘no-fault’ evictions and new rules limiting rent increases. Further requirements, including a new private rented sector database and landlord ombudsman, are also expected from late 2026, with the latter providing a redress service for private rented sector tenants. While the ombudsman will not be fully operational until 2028, the direction of travel is clear: those who fail to keep up with the new rules could face significant legal and financial consequences.

Portfolio landlords with larger or growing property portfolios will need to be especially careful and ensure they have the right processes in place to remain compliant across multiple properties. That includes keeping up with tenancy requirements and ensuring property management arrangements are robust.

This could lead some to place greater emphasis on new-build properties with high Energy Performance Certificate (EPC) ratings, where modern standards and lower maintenance requirements may offer additional reassurance.

For GCC residents seeking UK property finance, these new regulations are likely to shape the conversations with brokers from an early stage, including how the reforms could affect yields, affordability and long-term ownership plans. They could also further accelerate the shift identified in Nomo’s recent thought leadership report, which found GCC residents have increasingly turned to special purpose vehicles (SPVs) when making buy-to-let (BTL) investments.

Sponsored

Aldermore Insights with Jon Cooper: Edition 9 – Why lending strategy is becoming more central in buy to let

Sponsored by Aldermore

Brokers therefore have an important role to play in helping clients understand the wider considerations around a BTL purchase in this new, enhanced regulatory environment.

Support for brokers

To support brokers working with GCC clients, Nomo has launched Nomo Academy, a specialised hub offering learning materials, webinars and practical guidance. As a provider of digital, Sharia-compliant property finance, Nomo is well-placed to share market expertise and product knowledge with brokers advising GCC residents purchasing UK residential property. Against this backdrop, the Academy will host a “myth-busting” webinar on 17 June on Sharia-compliant property finance, helping brokers build a clearer understanding of how it works in practice.

While the Renters’ Rights Act will introduce additional professionalisation to the UK’s BTL market, opportunities will remain for those who understand and comply effectively with the new regulatory landscape. For GCC residents looking to purchase UK residential property for BTL purposes, adapting to these changes will be essential.

Meanwhile, brokers who understand the reforms will be well placed to support clients with clarity and confidence.