Landlords release £2.37bn to fund property improvements

Landlords released £2.37 billion from their properties to fund improvements last year, a 60% from 2024’s figure of £1.48 billion.

Paragon Bank’s analysis of industry data found the money was released across 14,817 remortgages during 2025, compared with 9,754 a year earlier.

It said the increase coincided with landlords preparing for further requirements under the Renters’ Rights Act.

Part of the cash was to fund the proposed application of the Decent Homes Standard to privately let properties.

Leveraging BTL borrowing

The lender’s managing director of mortgages, Louisa Sedgwick, said: “These figures reveal how landlords are strategically structuring their buy to let borrowing, leveraging the considerable amounts of equity they have built across their portfolios to finance property improvements.

“The timing of the increase in equity withdrawn for property improvements suggests that the Renters’ Rights Act is a driver, but landlords will also benefit from likely increases in the value of their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.”

Sedgwick added: “Our earlier research revealed that almost six in 10 landlords don’t get their EPCs assessed after undertaking works to make their properties more energy efficient.

“Not only could this lead to ambiguity around compliance with any new MEES but could also mean that they’re missing out on preferentially priced green finance products.”

Landlords spend £8,500 on improvements

Previous research by the bank found that 44% of landlords focus on properties that need work, spending an average of £8,500 on each one.

The most common improvements are new boilers, updated kitchens and bathrooms, and repairs for damp or structural issues.

Separate research found that four in 10 landlords plan to refinance this year, which rises to 57% for landlords with portfolios of four or more properties.

Paragon said brokers could see more finance demand to help pay for proposed Minimum Energy Efficiency Standards, so homes meet an EPC rating of C or above by 2030.