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 demand, the lender is now offering lending on portfolios and larger blocks of flats operated as serviced accommodation.

Key criteria highlights 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.

Commenting on the changes, Shawbrook director of real estate propositions Daryl Norkett 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.”