Landlords face a £75,000 bill for neglecting property maintenance

Landlords who defer repairs or step back from day-to-day management risk shaving tens of thousands of pounds off the value of their investments over a decade.

According to property management experts Rushbrook & Rathbone, failing to maintain an asset could see a landlord in England losing up to £36,429 over 10 years.

That bill soars to £75,000 for London’s landlords.

Long-term investment

The firm’s managing director, Roma Sharma, said: “Property is a long-term investment, but it’s one that requires consistent care and attention in order to perform at its best.

“Of course, it’s understandable that maintenance and management can sometimes be overlooked due to the cost involved, particularly as landlord profit margins have come under increasing pressure due to ongoing legislative changes.”

She added: “This is particularly true at present, with many landlords now facing further investment requirements to ensure their properties meet the evolving standards set by the Renters’ Rights Act, particularly the Decent Homes Standard.”

Regional property maintenance

The firm modelled the effect of a property slipping into poor or unmaintained condition over an average 10-year ownership period.

It assumes a reduction in value of between 10% and 15%, applied to current regional rented home estimates.

At a national average value of £242,857, that percentage drop translates to between £24,286 and £36,429 per property when an owner comes to refinance or exit.

London’s £75,000 bill

In London, the average rental property costs £500,000 so a 15% decline would remove £75,000 from the eventual sale price.

In the South West, landlords could see up to £52,381 being eroded through lack of upkeep.

That compares with £39,286 in the West Midlands and £35,000 in the South East.

The North East records a potential £28,481 reduction over 10 years, while Yorkshire and the Humber show £25,000 under the same calculation.