Somo has launched a new bridging product supporting landlord clients facing rising costs, regulatory reform and tightening rental margins.
The specialist lender’s Landlord’s Breathing Space Loan has been introduced as landlords prepare for the implementation of the Renters’ Rights Act 2025, alongside ongoing market uncertainty and fiscal pressures affecting the private rented sector.
SUPPORTING LANDLORD CLIENTS THROUGH CHANGE
From May, landlords in England will need to navigate the abolition of Section 21 no-fault evictions, the move to assured periodic tenancies, restrictions on rent in advance, tighter controls on rent increases and more stringent requirements around property standards.
For many brokers’ landlord clients, these changes are landing alongside elevated buy-to-let interest rates, higher maintenance costs and uncertainty ahead of the Autumn Budget, creating pressure on cashflow and portfolio performance.
Somo said brokers are increasingly encountering landlords who need time and flexibility to stabilise their position, whether that involves clearing arrears, funding essential works or reassessing longer-term exit or refinance options.
A FLEXIBLE TOOL FOR THE BROKER TOOLBOX
The Landlord’s Breathing Space Loan offers up to 24 months with no monthly payments, regardless of credit status, providing short-term relief when rental income is constrained or unpredictable. Loan sizes range from £25,000 to £3 million, with credit-backed decisions delivered in as little as 30 minutes.
Rather than relying on traditional credit scoring, Somo assesses applications based on the asset and the borrower’s circumstances, allowing brokers to place cases that may not fit mainstream criteria.
The product supports a range of exit strategies, including refinance, sale or transition into a buy-to-let or alternative bridging solution, giving brokers scope to adapt recommendations as market and legislative conditions evolve.
Jade Keval, sales director at Somo, said: “As the tenancy landscape changes dramatically, many landlords find themselves squeezed. Between rising costs, regulatory pressure and tighter yields.
“Our Breathing Space Loan gives brokers a practical way to help clients stabilise, adapt and plan ahead, without panic or rushed decisions.”
