Turning the Property Crisis into an Entrepreneurial Opportunity

The UK property market is facing its toughest test in decades. With rental demand surging and supply lagging far behind, headlines warn of an ongoing housing crisis. Yet, for seasoned property experts like Mish Liyanage, founder of Mistoria Group, this challenging environment also presents some of the most significant opportunities in years.

Liyanage argues that while the market may appear daunting, innovative thinking and a professional approach can transform challenges into profitable ventures. His strategy centres on adapting to shifting demand patterns, building sustainable models, and ensuring compliance in an increasingly regulated sector.

One key area he highlights is the repurposing of underutilised buildings. Across the UK’s cities, from Salford and Liverpool to Bolton and Manchester, countless vacant Victorian terraces and ex-commercial premises sit idle. Liyanage sees these as untapped assets that can be transformed into HMOs (Houses in Multiple Occupation). By creating high-quality, affordable shared housing, entrepreneurs can generate robust yields while addressing genuine social needs.

HMOs themselves are a cornerstone of his approach. Unlike traditional buy-to-lets, they offer greater flexibility and stronger rental returns. Young professionals, students, and key workers are increasingly drawn to this model, particularly in high-demand postcodes near universities, hospitals, and employment hubs. Liyanage notes that gross yields in parts of the North can reach 8–13%—a compelling case for investors seeking sustainable returns.

Another area of focus for Mish Liyanage is regulation. He cautions that planning rules such as Article 4 restrictions, licensing requirements, and upcoming reforms like the Renters Reform Bill demand close attention. While these measures can be hurdles, Liyanage argues that scarcity of licensed HMOs, especially in Article 4 zones, actually strengthens the value of compliant assets. Those willing to invest in meeting higher standards are rewarded with both tenant demand and long-term asset protection.

Social housing and eco-renovations also form part of his playbook. With government-backed schemes like ECO4 and the Social Housing Decarbonisation Fund, landlords have opportunities to secure funding for energy efficiency upgrades. By aligning property strategies with sustainability targets, Liyanage believes entrepreneurs can stay ahead of legislative changes while appealing to an increasingly eco-conscious tenant base.

Crucially, Liyanage stresses the importance of strong local partnerships. Builders, letting agents, and compliance specialists with on-the-ground knowledge can make or break a project. For entrepreneurs scaling portfolios across multiple regions, this networked approach reduces risks and ensures operational efficiency.

Despite the obstacles—rising interest rates, stricter lending criteria, and greater compliance costs—Mish Liyanage remains optimistic. He believes the winners in this market will be those who treat property as a professional business, not a passive investment. That means integrating systems for acquisition, refurbishment, lettings, and compliance into one seamless operation.

For Liyanage, the property crisis is not just a challenge but an accelerator of change. Those who embrace innovation, sustainability, and discipline won’t simply weather the storm—they’ll emerge stronger. His message to entrepreneurs is clear: the property sector may be under pressure, but within that pressure lies the potential to thrive.