Nearly half of landlords are preferring to purchase properties in need of refurbishment, according to research by Paragon Bank.
In a survey of 500 landlords, for the bank’s ‘Improving standards and sustainability in PRS properties’ report, it was found 44% prefer to purchase properties in need of improvement.
While a quarter would prefer to buy properties ready to rent, 32% had no preference between the two strategies.
Paragon also found that landlords will spend an average of £8,500 across their portfolio on property improvements.
Landlords with up to three properties will spend an average of £3,500 a year while those with up to 10 will spend an average of £8,100.
Average annual investments of £11,800 are made by landlords with 11 or more rental properties in their portfolios.
Paragon found that 76% of landlords had installed new boilers in their properties, compared to only 3% opting for heat pumps.
Over half (54%) have remedied damp issues with 22% seeing to structural issues.
“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%,” said Louisa Sedgwick, managing director of mortgages at Paragon Bank (pictured above).
“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 a key facet of the Renter’s Rights Bill.”
