In every market cycle, the most successful property investors are those who adapt. Where some see barriers, others spot opportunities. The sector has navigated everything from the global financial crisis to Covid, and now, particularly for Scottish landlords, a wave of legislative and fiscal pressures.
Rent controls, rent freezes, and the Additional Dwelling Supplement (ADS) have all altered the landscape. Yet one truth remains unchanged: property, when approached strategically, continues to be one of the most robust long‑term investment vehicles available. The resilience of Scottish landlords is evidenced time and again.
What’s often overlooked, however, is that lenders are adapting too. Banks and specialist funders have been evolving their offerings to help investors continue to grow, add value, and remain competitive. Below are two standout product categories that have gained real traction.
- Below market value (BMV) loans – stronger than ever
Below Market Value lending is not new, but it has shifted significantly in a way that benefits modern investors.
Traditionally, lenders offering BMV loans, mainly via bridging finance, would consider 75% loan‑to‑value against the property’s open market value (OMV), provided this didn’t exceed 90% of the purchase price. Investors typically still had to put in 10% to demonstrate “skin in the game.”
But competition amongst lenders has changed the landscape.
In recent years, some lenders began offering 100% of the purchase price, especially on portfolio acquisitions of six or more units. These were treated as commercial transactions, meaning no 8% ADS liability. Motivated sellers, bulk discounts, and quick purchase times made these deals attractive, and lenders quickly realised there was demand for a more flexible offering.
The result … BMV lending is now more accessible, more competitive, and more investor‑friendly than at any point in the past decade.
- Buy‑to‑let refurbishment loans – a new product for 2026
At the end of January 2026, a forward‑thinking lender launched a Refurbishment Buy‑to‑Let (Refurb BTL) product that is already attracting considerable attention from experienced landlords.
This loan is designed for investors who want to add value immediately through a light refurbishment before letting the property. Key features include:
- One facility for both the purchase and the works
This significantly reduces valuation risk and avoids potential shortfalls when refinancing onto a separate lender.
- Refurbishment costs up to 25% of the day‑one property value
- Available across Scotland, England, and Wales
- Suitable for all borrower structures
Ltd companies, LLPs, individuals, SPVs – everything is considered.
For value‑add investors, this type of product creates a seamless route from purchase to refurbishment to long‑term letting, removing friction and reducing risk.
A challenging climate but not a closed door
There is no denying that the Scottish private rented sector is facing challenges. Government intervention, whether through legislation or taxation, continues to create uncertainty and friction. These pressures can discourage new entrants and restrict supply, ironically at a time when Scotland desperately needs more homes for families.
But despite this, opportunities absolutely still exist.
With:
- Innovative lenders creating smarter financial solutions
- Experienced brokers guiding investors through the detail
- And the continued resilience, creativity, and savvy approach of Scottish landlords
…the market remains fertile for those willing to adapt.
Property investment has never been for the faint‑hearted but for the innovative and informed, it continues to deliver long‑term, reliable value.
