The firm said that as part of the criteria change, it would lend on portfolio and larger blocks of flats operated as serviced accommodation.
Shawbrook said that for portfolios with 10 or fewer units, no additional evidence is required, and for portfolios over 10 units, either two years’ accounts for established assets or a cashflow forecast is required for new assets to assess income generated on a nightly basis.
The maximum loan amount would be based on market rent under an assured shorthold tenancy (AST), confirmed by valuation. This is up to 75% loan to value (LTV), available across its buy-to-let (BTL) range.
The firm said its internal data showed a 14% increase in landlords investing in multi-unit freehold blocks (MUFBs), and the “momentum” has continued into 2025.
Daryl Norkett, director of real estate proposition at Shawbrook, said: “Throughout 2024, we saw a significant rise in landlords exploring investments in MUFBs, and this has continued into 2025 as more landlords seek to diversify their portfolios.
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“Our enhanced criteria for serviced accommodation lending reflect our dedication to support landlords as they adapt to market trends and explore new income streams, helping them unlock greater potential and long-term success in the rental market.”
