Landlords are focusing on ‘doer-uppers’, spending about £8,500 yearly on their property portfolios, according to research from Paragon Bank.
The bank’s survey revealed that 44% of landlords targeted homes in need of upgrades, while 25% preferred properties ready to rent.
Nearly a third of landlords, 32%, didn’t mind either option.
Research also showed that annual investment on upgrades averaged £8,500 per portfolio, varying by portfolio size.
Those with one to three properties spent £3,500 a year on average, rising to £8,100 for those with four to 10 properties.
Landlords with 11 or more rental homes spent around £11,800 annually.
Louisa Sedgwick, managing director of mortgages at Paragon Bank, said: “The findings of our research align with official Government data showing how the last 15 years has seen the proportion of PRS properties classed as ‘non decent’ fall from 41% to 21%.
“Of course, there’s still work to do to ensure that all tenants live in safe, comfortable homes, so it’s great to see many landlords are already actively improving their portfolios, especially as this is a key facet of the Renter’s Rights Bill.”
Most landlords invested in internal renovations with 65% upgrading bathrooms and 62% improving kitchens.
While 76% installed new boilers, only 3% opted for heat pumps.
External upgrades were also common, with half installing new windows and 39% replacing roofs or doors.
Additionally, safety improvements included 54% of landlords fixing damp issues, while 22% addressed structural problems.
Sedgwick added: “This research showing that landlords spend substantial sums to improve their properties is supported by our own lending and our popular refurb-to-let product was developed precisely for this purpose.
“We often see borrowers take on extra funds when remortgaging and with the large number of mortgages set to mature this year, it’s a great time for brokers to discuss the options available to their landlord clients who might want to take the opportunity to invest in enhancing their portfolios.”
