The Intermediary – December 2025 - Flipbook - Page 30
A YEAR IN REVIEW
Feature
This surge in new products was particularly
significant for those tenants trapped in the rent
cycle. Jones highlights that the latest wave of
products has been “designed for tenants who
demonstrate financial responsibility, but who
struggle to save a substantial deposit amid rising
rents and living costs.”
Alongside this mainstream recovery, the
specialist lending and short-term finance
markets also grew at pace.
Chris Daly, managing director, structured
real estate at Glenhawk, says: “Short-term
finance continued its upward trajectory, a trend
supported by BDLA data.
“This growth was driven by a variety of factors,
including below-market-value purchases,
This combination created a more favourable
backdrop for lenders, offering increased
confidence to reprice products and support
borrower activity after several years of volatility.
At the heart of this shift was monetary policy.
The Bank of England’s steady stream of rate
reductions throughout the year had a decisive
influence on sentiment and affordability. The
Base Rate fell from 4.75% in January to its
current level of 4%, following reductions in
February, May, and August.
Richard Sexton commercial director of
Houzecheck, says: “Fortunately, 2025 did see
some movement in the base rate which helped
the property finance market.
“Those of you with long memories will
remember that the Bank of England began
raising interest rates at the end of 2021 to help
control inflation. Since then, inflation has fallen
a lot, and the pressures that caused the initial
price rises have eased.”
Looking ahead, Sexton also captures the
cautious optimism felt across the industry: “If it
falls in 2026, the Bank of England should be able
to gradually reduce the interest rate further.
“That would be great news for surveyors and
brokers alike.”
This easing of funding conditions fed directly
into product innovation. One of the most notable
trends of 2025 was the resurgence of high loanto-value (LTV) lending, something many had
considered improbable just a year earlier.
Jones explains: “Lenders responded positively
launching some exceptional low-deposit
mortgage products. High LTV mortgages,
including 97%, 99% and even 100% LTV options,
saw a resurgence in 2025.”
Indeed, lenders such as April Mortgages, Vida
Homeloans, Halifax, Accord Mortgages and more
began offering innovative solutions, tailored to
those hoping to step onto the property ladder
for the first-time.
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The Intermediary | December 2025
acquisitions through receivership or auction,
and a desire for greater flexibility in managing
development exits and stabilisation phases.”
This environment reshaped broker roles and
borrower behaviour alike.
Daly continues: “For brokers, this shift
required a more creative approach to structuring
solutions, while borrowers benefited from
increased flexibility and a wider range of
strategic options for both individual properties
and portfolios.”
However, he notes that uncertainty remained
a defining backdrop: “With ongoing uncertainty
around tax, politics, and the wider economy,
many borrowers favoured adaptable short-term
products rather than committing to long-term
fixed solutions.”
Renters’ Rights Act
One of this year’s most transformative events
arrived on the 27th of October, when the longdebated Renters’ Rights Act finally passed into
law. At its core was the abolition of Section
21 ‘no fault’ evictions, ending a longstanding
mechanism that allowed landlords to reclaim
possession without establishing grounds.
In its place came a strengthened Section 8
framework, with new and expanded permissible
grounds for possession.
Beyond eviction reform, the Act delivered a
significant package of tenant protections. These
included enhanced notice requirements, greater
rights to challenge poor housing conditions,
and the introduction of new measures limiting
retaliatory evictions. The Act also mandated
that all rented homes must meet an updated
Decent Homes Standard, extending a benchmark
previously applicable primarily to social housing.
Unsurprisingly, the impact rippled almost
immediately through the property investment
sector. Spencer says: “Regulatory changes such
as the Renters Rights Act spurred BTL sales
