Somo launches Landlord’s Breathing Space Loan to support landlords navigating post-Reform and Budget rental market

27 January 2026

Manchester, UK

Specialist lender Somo has announced the launch of its Landlord’s Breathing Space Loan, a flexible bridging solution designed to help landlords cope with rising interest rates, market uncertainty and the significant regulatory changes brought about by the Renters’ Rights Act 2025.

Why now? A transforming rental market

With the Renters’ Rights Act 2025 coming into force in May, landlords in England face one of the biggest overhauls of the private rental sector in decades.

Key changes coming into force in just a few month’s time include: abolition of no-fault evictions under Section 21; transition to a new assured periodic tenancy regime (ending fixed-term tenancies); limits on rent in advance; stricter rules around rent increases; and tighter regulation on property standards and tenant protections.

These sweeping changes, combined with historically high buy-to-let interest rates, increasing maintenance costs and wider economic uncertainty ahead of the Autumn Budget 2025, have squeezed many landlords’ margins and dampened rental yield potential.

In this climate, landlords, especially those under pressure, managing portfolios, or looking to reposition, need liquidity, flexibility and breathing space to stabilise and plan ahead.

What Somo’s Breathing Space Loan offers

Up to 24 months of no monthly payments, regardless of credit status giving landlords breathing room when rental income is insufficient or uncertain.
Instant liquidity (from £25,000 up to £3,000,000) enabling landlords to cover arrears, complete necessary maintenance, refurbishments or modernisations, or simply shore up cashflow.
Flexible exit strategies, whether via refinance, sale or a new BTL / bridging product, allowing landlords to adapt as market and legislative conditions evolve.
Credit-backed decisions in as little as 30 minutes and no reliance on traditional credit scoring - decisions based on the asset and the story
A solution tailored for single landlords or portfolio landlords, providing flexibility to accommodate a variety of landlord circumstances and strategies.

By pausing monthly obligations and providing ready access to cash, the loan helps landlords ride out a period of flux giving time to rebuild rental income, upgrade properties to meet changing standards, or reset before exit or refinance.

A stabiliser at a time of upheaval

“As the tenancy landscape changes dramatically, many landlords find themselves squeezed. Between rising costs, regulatory pressure and tighter yields,” says Jade Keval, Sales Director at Somo. “Our Breathing Space Loan gives them the time, flexibility and liquidity to stabilise, adapt and plan ahead, without panic or rushed decisions.”

The product is designed to complement the broker toolbox, giving them a viable rescue or repositioning option when clients face cashflow stress or find themselves caught between high interest rates, increased regulation and tight rental margins.

With a 2% rise to property-income tax rates for landlords from April 2027, alongside the introduction of the new “mansion tax” (a high-value council-tax surcharge on homes over £2 million) for certain high-end properties, the pressure on private-rented sector owners has increased significantly.

Somo is therefore launching their Breathing Space Loan, fully live and ready to deploy immediately, giving brokers and landlords a practical, flexible tool to stabilise cash flow, cover arrears or refurbish and reposition properties in light of the new tax regime with no monthly payments for up to 24 months.

For further information, or to speak to a member of the Somo team, please visit somo.co.uk or contact daniela.gallucci@somo.co.uk