Somo launches ‘Landlord Breathing Space’ loan as rental reform pressures mount

By

Jade Keval - Sales Director at Somo (1)

Somo has launched its new Landlord’s Breathing Space Loan, a flexible bridging solution designed to help landlords manage cashflow pressure as rental market reform, higher costs and tighter yields reshape the buy-to-let landscape.

With the Renters’ Rights Act coming into force in May 2025, landlords are facing the most significant regulatory overhaul in decades.

The removal of Section 21, the shift to periodic tenancies, tighter controls on rent increases and higher standards requirements are landing at the same time as elevated interest rates and rising maintenance costs.

For many landlords, particularly those with leveraged or transitional portfolios, margins are under real pressure.

Somo’s Breathing Space Loan is designed to give landlords time and flexibility to stabilise, reposition or plan an exit without being forced into rushed decisions.

The product allows up to 24 months with no monthly payments, regardless of credit profile, providing immediate relief where rental income is tight or uncertain.

Loans are available from £25,000 to £3 million, giving landlords access to liquidity to clear arrears, fund essential works, upgrade properties to meet new standards, or simply shore up cashflow.

Decisions are asset-led rather than credit-score driven, with credit-backed approvals possible in as little as 30 minutes.

Exit options remain flexible, whether via refinance, sale or onward buy-to-let or bridging finance, making the product suitable for both single-property and portfolio landlords.

Jade Keval, Sales Director at Somo, said:

“Landlords are being squeezed from multiple directions at once, regulation, costs, interest rates and uncertainty around future tax changes.

The Breathing Space Loan is about giving them time, liquidity and control.

It allows landlords to stabilise, adapt and plan properly, rather than being forced into reactive decisions.”

The loan is designed as a practical tool for brokers dealing with landlords under pressure, offering a genuine repositioning or rescue option at a time when traditional refinancing isn’t always viable.

Google NewsFOLLOW ON GOOGLE NEWS