Shawbrook enhances lending criteria to support growing demand within serviced accommodation

As the property market continues to evolve, professional landlords are increasingly seeking ways to maximise their rental income through diversifying their portfolios. Recognising this trend, Shawbrook has enhanced its lending criteria to support landlords investing in serviced accommodation, enabling them to capitalise on the properties they let

Related topics:  Criteria,  Buy to Let
Editor | Modern Lender
30th June 2025
Criteria 2

As the property market continues to evolve, professional landlords are increasingly seeking ways to maximise their rental income through diversifying their portfolios. Recognising this trend, Shawbrook has enhanced its lending criteria to support landlords investing in serviced accommodation, enabling them to capitalise on the properties they let.

Throughout 2024, Shawbrook’s internal data recorded a 14% increase in landlords investing in Multi-Unit Freehold Blocks (MUFBs), and the momentum in this space has carried into 2025. To meet this growing demand, Shawbrook now offers lending on portfolios and larger blocks of flats operated as serviced accommodation.

Key highlights of their criteria include:

  • Maximum loan amounts continue to be based on market rent under an Assured Shorthold Tenancy (AST), as confirmed by valuation, with up to 75% Loan-to-Value (LTV) available across their Buy-to-Let product range.
  • For portfolios with 10 or fewer units, no additional evidence is required.
  • For portfolios exceeding 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.

Daryl Norkett, Director Real Estate Proposition at Shawbrook comments: “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. 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.”

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