OSB Group (OSB) investor relations material

Market overview and structural drivers

• The UK private rented sector faces a 4.3 million home shortage, with 19% of homes rented privately, making buy-to-let a critical segment for housing supply and investment.

• Demand for rental housing is robust, with affordability pressures and lifestyle choices increasing long-term rental demand, especially among younger demographics.

• Professional landlords are increasingly dominant, with 92% of new originations in 2024 via limited companies and 75% of 2025 buy-to-let purchases through limited companies, reflecting a shift from amateur to professional ownership.

• Rental yields remain strong at 6–6.5%, with rents up 34% since the pandemic and 85% of landlords reporting profitability.

• Intergenerational wealth transfer is expected to bring £3bn and 2 million properties to new, younger landlords, further professionalizing the sector.

Competitive positioning, business strategy, and transformation

• OSB has invested in a multi-year transformation, launching the Rely brand and a modern digital platform, enabling rapid product repricing and operational agility.

• The transformation plan includes a new technology platform, operational efficiencies, and AI deployment to enhance speed, risk control, and customer experience.

• Operational leverage and cost discipline are expected to drive a cost-to-income ratio in the low 30s% by the end of the plan, supporting scalable growth without proportional headcount increases.

• Buy-to-let remains the largest segment, targeted to comprise ≤60% of the net loan book by 2029, with ongoing diversification into specialist residential, commercial, and asset finance.

• OSB’s scale, technology, and expertise underpin its ability to support professional landlords and adapt to regulatory and market changes.

Operational transformation and technology

• The new platform automates routine tasks, reducing manual effort and processing times by 30%, and enables real-time risk-based decisioning.

• AI is being embedded for fraud prevention, income verification, data validation, and broker support, with ongoing investment in staff education and future-fit skills.

• Platform integrates with 30+ fintech solutions and supports scalable growth without increasing headcount.

• OSB’s end-to-end digital journey is seen as a market differentiator, with brokers citing faster, more reliable service compared to competitors.

• Feedback loops allow rapid platform enhancements, with changes implemented in weeks rather than months.