ADVANTAGE ONLINE | JUNE 2026 11
Chasing yield, not just capital growth
This shift is increasingly a matter of viability. Even though average UK rents went up by 3.5 % over the last year, that extra cash is usually eaten up by higher interest rates. When you add in the fact that house price growth is only expected to be around 1.5 % for the year, the profit on a standard buy-to-let just doesn’ t make sense anymore for many.
It is the reason why HMO bridging searches more than doubled in 2025, climbing to £ 147m from £ 69m the previous year. When property values aren’ t skyrocketing, you have to find your profit in the monthly rent. Houses in Multiple Occupation( HMOs) provide that cash flow, but they are expensive to set up. Brickflow is seeing more people use bridging to take“ tired” buildings and turn them into high-end, professional rentals that actually pay for themselves in today’ s economy.
Why tech is powering the pivot
The reason we are seeing such a massive surge in search data isn’ t just about the market shifting: it’ s about how investors are using technology to get ahead of it. In the past, a landlord might have waited weeks for a broker to run some manual numbers. Now, the more experienced investors are using data-driven platforms to model these complex HMO and mixed-use scenarios in seconds.
This move toward proptech is a sign that landlords are shifting toward a more sophisticated, institutional-grade strategy. When margins are this tight, you can’ t afford to guess. The search data shows that investors are becoming much more analytical, using tech to scan the whole market for the best bridging exits before they even buy a property.
A new challenge for brokers
For brokers, this means the job is changing. The‘ best’ deal is no longer defined solely by the interest rate, but by its structural viability. In this market, the exit strategy is much more important than the cost of the initial bridge.
There is increasing pressure on lenders whose models struggle to accommodate more complex assets and don’ t understand how mixed-use or HMO projects actually work. If a valuation doesn’ t keep up with how fast the market is moving, it is going to leave investors stranded.
Brokers are now finding they have to be more like consultants. The complexity of the current market means that traditional, manual sourcing is reaching its natural limit. Relying on a narrow pool of familiar lenders can inadvertently restrict a borrower’ s options. To provide a truly comprehensive service, accounting for everything from Return on Capital Employed( ROCE) to exit viability, tech tools are becoming an essential part of the broker’ s toolkit to scan the entire market in seconds.
What’ s next?
These record-breaking numbers aren’ t a fluke. They represent a massive reinvestment in the UK’ s housing stock. The traditional market is shrinking, but it is being replaced by specialists who focus on property as a full-time business.
The path forward for 2026 is all about navigating that complexity. Those who are willing to use the right data and look at mixed-use and HMO developments will find plenty of opportunities. The market is becoming more complex, but for those equipped with the right tech to navigate it, that complexity is where the opportunity now sits. Find out more Visit the Brickflow website to find out more about our range of bridging, commercial and development finance options.