Specialist lender Somo has launched a new product aimed at landlords facing higher borrowing costs and regulatory change following the Renters’ Rights Act 2025 and recent Budget measures affecting the rental market.
The new bridging solution, the "Landlord’s Breathing Space Loan", is designed to give landlords time to stabilise finances while adapting to shifting market and legislative conditions, focusing on short-term flexibility rather than long-term repayment structures.
The loan allows landlords to pause monthly payments for up to 24 months, regardless of credit status. This feature is intended to provide short-term relief where rental income is under pressure or temporarily disrupted.
Borrowers can access funds ranging from £25,000 to £3,000,000. Somo says this liquidity can be used to clear arrears, carry out essential maintenance, fund refurbishments or modernisations, or support day-to-day cashflow during periods of adjustment.
Other elements of the product include:
Exit options through refinance, sale or a new buy-to-let or bridging facility, giving landlords flexibility as market conditions evolve.
Credit-backed decisions can be delivered in as little as 30 minutes, with assessments based on the asset and the borrower’s circumstances rather than traditional credit scoring alone.
Suitable for both single-property landlords and portfolio landlords, allowing for a range of strategies and financial positions.
By removing monthly repayment pressure and providing immediate access to capital, the product is positioned as a way for landlords to manage a transitional period. Somo says this could allow time to rebuild rental income, upgrade properties to meet changing standards, or prepare for a refinance or exit strategy.
The launch comes as landlords continue to reassess portfolios in response to higher interest rates and reforms affecting tenancy rules and compliance obligations. Industry data has shown that some landlords are delaying sales or refinancing while waiting for greater clarity on how new regulations will affect rental returns.
The lender expects the product to appeal most to landlords who need time to restructure finances, carry out works to properties, or decide whether to hold or sell assets in a changing market.
“As the tenancy landscape changes dramatically, many landlords find themselves squeezed,” said Jade Keval, sales director at Somo (pictured).
“Between rising costs, regulatory pressure and tighter yields. Our Breathing Space Loan gives them the time, flexibility and liquidity to stabilise, adapt and plan ahead, without panic or rushed decisions.”
