Section 24, Regulations & Stress: Why Landlords Are Switching Strategies

If you speak to landlords right now, the tone of the conversation has changed.

It’s no longer:

“How do I grow my portfolio?”

It’s:

“Is this even worth it anymore?”

Over the past couple of years, I’ve had countless conversations with landlords - and they’re all saying the same thing in different ways:

“The game has changed… and I’m still playing by the old rules.”

Between Section 24, increasing regulation, and rising costs, the traditional buy-to-let model is under pressure. And more importantly - landlords are starting to feel it.

The Real Impact of Section 24

Let’s start with the biggest one: Section 24.

On paper, a lot of landlords still look like they’re making money.

But in reality?

They’re not seeing it.

I’ve had landlords say to me:

“I’m making profit on paper, but I’ve got no cash left at the end of the month.”

“I’m being taxed on turnover, not real profit.”

That’s the problem.

Portfolios were built under old assumptions - when mortgage interest was fully deductible. Now that’s changed, margins have been squeezed heavily.

And the biggest issue?

Most landlords haven’t adapted.

They’re still running the same strategy… in a completely different environment.

Regulation Is Turning Property Into a Full-Time Job

Then you’ve got compliance.

What used to be relatively straightforward is now:

• EPC requirements

• Licensing schemes

• Safety regulations

• Ongoing legal changes

And what I hear constantly is:

“Every year there’s something new.”

Or worse:

“I’m worried I’ve missed something and I’ll get fined.”

Being a landlord today isn’t passive.

It’s a compliance-heavy business - and for a lot of people, especially smaller landlords, it’s exhausting.

The Feeling That Everything Is Stacked Against Them

This comes up in almost every conversation.

There’s a strong sense that:

• Tenants have more rights

• Landlords carry more risk

• The reward isn’t what it used to be

Whether that’s entirely accurate or not doesn’t matter.

Because perception drives decisions.

And right now, many landlords feel like they’re working harder, taking more risk, and earning less.

Rising Costs Are the Final Pressure

On top of everything else:

• Mortgage rates have increased

• Maintenance costs are higher

• Licensing and compliance cost more

And landlords are saying:

“My costs keep going up… but my rent can only go so far.”

So what happens?

Margins get squeezed from every direction.

The Real Problem (That Most Landlords Don’t See Yet)

When you zoom out, it’s not just Section 24, or regulation, or costs.

It’s this:

The traditional buy-to-let model isn’t broken - it’s just outdated.

For years, landlords could “set and forget” and still make money.

That’s no longer the case.

Now, property needs to be treated like a business.

And most landlords haven’t made that shift yet.

What Landlords Are Starting to Do Instead

Once landlords hit that moment of:

“This isn’t worth it anymore…”

They start looking for alternatives.

Here’s what I’m seeing happen in real time:

1. Prioritising Certainty with Guaranteed Rent

A lot of landlords are moving towards certainty over maximum income.

They’re saying:

“I’d rather earn slightly less if it means no voids and no hassle.”

This is especially common with landlords who are:

• Tired

• Time-poor

• Fed up with tenant issues

They want income that’s:

• Predictable

• Hands-off

• Stress-free

2. Switching to Higher Cash Flow Strategies

More switched-on landlords are asking:

“How do I get more from this property?”

That’s where strategies like serviced accommodation come in.

Why?

• Higher income potential

• Better suited to offset Section 24

• Stronger cash flow

The challenge is:

Most landlords don’t want to run it themselves.

3. Becoming More Strategic with Tax

There’s also a shift towards:

• Buying in limited companies

• Restructuring portfolios

Landlords are becoming more aware of how tax impacts their returns.

It’s not a full solution - but it’s part of adapting.

4. Selling Underperforming Properties

This is happening more than people think.

Especially when properties:

• Barely cash flow

• Have high mortgages

• Require constant effort

Landlords are asking:

“What’s the point in holding this?”

Some are exiting completely.

Others are looking for ways to make the asset perform better before deciding.

5. Being Open to New Partnerships

This is a big shift.

Landlords are becoming more open to:

• Guaranteed rent

• Lease options

• Joint ventures

• Hands-off Airbnb management

The mindset is changing to:

“If someone can run this better than me… I’m open to it.”

A Real Example: From Selling to High Performance

I recently spoke to a landlord with a 2-bed apartment.

Rent: £850/month

Mortgage + costs: ~£700/month

Real profit after Section 24: almost nothing

He said to me:

“On paper I’m making money, but in reality I’ve got nothing left. One repair and I’m wiped out.”

He was frustrated, stressed, and seriously considering selling.

What We Did

Instead of selling, we suggested a different approach:

Convert the property into fully managed airbnb unit (serviced accommodation).

We handled:

• Setup and furnishing

• Listing optimisation

• Pricing strategy

• Full management

He didn’t have to do anything.

The Result

Within a few months:

Revenue: £2,200–£2,600/month

All costs covered

Net profit: significantly higher

His words:

“I was ready to sell this… now it’s my best-performing property.”

The Lesson

The issue wasn’t the property - it was the strategy.

Once that changed, everything changed.

The Biggest Mindset Shift

Here’s the reality landlords need to accept:

Property is no longer passive - it’s a business.

The landlords who are winning today are asking:

“How do I get the highest return from this asset with the least friction?”

That means:

• Actively optimising properties

• Adapting strategies

• Or working with someone who can do it for them

Because today, it’s not about ownership.

It’s about performance.

What Landlords Actually Want Now

After everything - Section 24, regulation, rising costs - landlords aren’t chasing maximum rent anymore.

They’re chasing peace of mind.

They want:

• Predictable income

• Less involvement

• Confidence their property is performing

Because right now, many feel:

• Stressed

• Uncertain

• Constantly reacting

And what they really want is simple:

“I want my property to feel like an asset again… not a liability.”

Final Thoughts

Landlords aren’t leaving property.

They’re leaving outdated ways of operating.

And moving towards:

• Better strategies

• Higher performance

• Lower stress

Because in today’s market, it’s not enough to just own property.

You need to make sure it actually works.