The BRR margin has tightened in 2026. Discounts on motivated-seller stock have compressed in the North West and Midlands, valuers are running more conservative comparables on refinance, and the BTL product environment is less generous than it was 18 months ago. The strategy still works — but the underwriting needs to.
Where the margin still sits
- Secondary towns within 30 minutes of a Tier 1 city, where comparable evidence supports GDV but acquisition discounts remain
- MUFB conversions with planning gain, particularly four-plus unit conversions
- Commercial-to-resi PD opportunities sourced through specialist agents
- Asset-class arbitrage — turning underperforming single-let into HMO or SA
What we're seeing on refinance
Valuers are downvaluing more frequently than 18 months ago. We're advising investors to use a 5–10% buffer on modelled GDV and to pre-package comparables in the refinance pack — not assume the valuer will source their own.
Read this alongside
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