The UK rental market is going through one of its biggest periods of change in a generation.
With the Renters’ Rights Act 2025 coming into force this May, and a more uncertain economic backdrop ahead of the Autumn Budget, landlords across England are facing a very different operating environment, one that demands more flexibility, not less.
That’s why Somo has launched the Landlord’s Breathing Space Loan: a new bridging solution designed specifically to give landlords time, liquidity and options when the pressure is on.
Why landlords are feeling the squeeze
The Renters’ Rights Act 2025 will bring sweeping reforms to the private rented sector, including:
- The abolition of Section 21 “no-fault” evictions
- A move to open-ended periodic tenancies
- Limits on rent in advance
- Tighter rules around rent increases
- Higher standards for property condition and compliance
At the same time, landlords are dealing with higher interest rates, rising maintenance costs, and tighter rental margins. For many, the sums simply don’t stack up in the way they used to - particularly for portfolios that were built under a very different regulatory and funding regime.
For landlords trying to refinance, carry out essential works, clear arrears or reposition a property, the timing couldn’t be more difficult. What they need isn’t a rigid product, it's room to breathe.
What is the Landlord’s Breathing Space Loan?
Somo’s Landlord’s Breathing Space Loan is a property-backed bridging facility built for today’s rental market realities.
It gives landlords something that has become increasingly rare: time without monthly financial pressure.
Here’s what it delivers:
- Up to 24 months with no monthly payments - So rental income, or future refinance plans, aren’t immediately swallowed by debt servicing.
- Loans from £25,000 up to £3 million - Providing fast access to liquidity to clear arrears, fund refurbishments, upgrade properties or stabilise cashflow.
- Flexible exits - Whether that’s refinancing onto a buy-to-let, switching to another bridging product, or selling when the timing is right.
- Asset-led decisions, not rigid credit scoring - Somo looks at the property and the wider story, not just a credit score.
- Works for single or portfolio landlords because one size never fits all.
By pausing monthly obligations and unlocking cash against property, the loan gives landlords the chance to reset, upgrade, refinance or exit on their own terms - not under pressure.
A stabiliser in a changing market
Jade Keval, Sales Director at Somo, explains why the product matters right now:
“The rental market is changing fast. Between rising costs, regulatory reform and tighter yields, many landlords are being squeezed from all sides. Our Breathing Space Loan gives them the time, flexibility and liquidity to stabilise, adapt and plan ahead, without panic or rushed decisions.”
For brokers, it adds something increasingly valuable to the toolkit: a rescue and repositioning solution for landlords who might otherwise be forced into the wrong refinance, or a distressed sale.
It’s designed for those moments when a landlord isn’t in trouble but they can see the pressure coming.
Built for the new landlord landscape
With tax and regulatory pressures continuing to build, landlords are having to think more strategically about how they run, fund and restructure their portfolios.
Somo’s Landlord’s Breathing Space Loan is now fully live and ready to deploy, giving brokers a practical way to help clients:
- Stabilise cashflow
- Clear arrears
- Upgrade or reposition properties
- Buy time ahead of a refinance or sale
All without the burden of monthly payments for up to two years.
Because when the market is shifting, the last thing landlords need is a product that forces them into a corner.
Are you a landlord, or an introducer who knows a landlord, who could benefit from some breathing space? Get in touch:
📞 0161 312 5656
📧 brokers@somo.co.uk
Find your Regional Relationship Director today or explore our full range of bridging loan products.
Categories: Borrower News, Broker News
