According to the research conducted by Shawbrook Bank, brokers believe their clients lack awareness about the changes despite their importance in making decisions.
One in four, or 28% brokers surveyed said their clients were not aware of the changes at all.
Almost two-thirds, or 61% added their clients were aware of the PRA rules, but lacked enough understanding of the changes that were made – specifically those made to underwriting standards for buy-to-let properties.
This was despite brokers listing the knock-on effects of the PRA and Financial Conduct Authority (FCA) regulations as the top issue likely to impact their clients this year.
However, brokers surveyed reported that the changes to regulation were having a positive impact on business.
Almost half, or 44% of the 211 brokers surveyed noted an increase in portfolio landlords approaching them following the changes to the PRA requirements.
And 58% believed the changes should help their business, particularly as landlords sought further guidance on the changes.
Shawbrook managing director of commercial mortgages Karen Bennett said the research had highlighted the critical need for more education in the investor market regarding the impacts of regulatory change.
“The benefits of increased awareness are two-fold. First, it should help prevent clients from sleepwalking into a problem and allow them to adjust their investment strategy accordingly,” she said.
“Second, according to our research, brokers are also seeing increased enquiries from landlords which demonstrates that the value of professional advice should never be underestimated and that there are still opportunities for business growth,” she added.