Landlords drove a 60% surge in remortgaging activity to improve buy-to-let properties last year, according to Paragon Bank research.
Equity valuing £2.4bn was withdrawn to improve buy-to-let properties last year, up 60% on the £1.5bn withdrawn in 2024.
The bank found that 14,817 remortgages were conducted in 2025, with an average of £43,000 released, up from 9,754 remortgages the year before.
Paragon has found landlords seeking to improve their BTL properties drove this trend, with the growth in borrowing correlating with the Renters’ Rights Act, suggesting landlords have invested to ensure they are compliant.
This tallies with Paragon research carried out by Pegasus Insight, which surveyed 631 landlords and found 44% were actively targeting home improvements.
These landlords are spending an average of £8,500 per property, most commonly fitting new boilers, new bathrooms or addressing damp or structural issues.
Paragon’s research also found that four in 10 landlords plan to refinance this year, increasing to 57% for those with four or more properties.
“These figures reveal how landlords are strategically structuring their BTL borrowing, leveraging the considerable amounts of equity they have built across their portfolios to finance property improvements,” said Louisa Sedgwick, managing director of mortgages at Paragon Bank.
“The timing of the increase in equity withdrawn for property improvements suggests that the Renters’ Rights Act is a driver, but landlords will also benefit from likely increases in the value of their investments and the additional appeal to tenants.”
