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14/7/25 8:13 pm
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More than half of landlords (51%) who’ve made renovations during the last five years regret their decision.
A poll by The Mortgage Works found that 47% of landlords had carried out renovations when the property was vacant, so the most common gripe was loss of income (35%) when tenants had to move out while the work was done.
It reports that 32% of landlords didn’t get the result or the rental income they wanted after doing the work, while 30% thought the renovations cost too much.
Kitchen and bathroom improvements were the most popular with one in five (20%) landlords, while 18% made green improvements. Of these, just over a third (37%) had solar panels added, 33% improved pipe and boiler insulation and 32% had electric car charging installed.
Two thirds (68%) of landlords said some of the work undertaken was related to converting a property to an HMO.
Landlords cited a variety of reasons for renovating, but the most popular were to attract new tenants and reduce vacancy periods (27%) and to boost the value of their property (25%).
More than 80% of landlords increased the rent charged once the renovations were complete, with an average increase of 17%; nearly a third (32%) were able to increase the rent by more than 20% once the work was finished.
Senior economist Andrew Harvey says: “Across all landlords making renovations in the last five years, the average spend was around £88,000 in total, although there was significant variation, which reflects the mixture of work undertaken and portfolio size. Taking account the number of properties renovated, this works out around £43,000 per property.”
The Mortgage Works estimates that adding an extra bathroom can boost BTL property value by 8% while increasing floor area to incorporate an extra bedroom can add 12% to typical rent (around £125 per month), and a second bathroom attracts a 6% rental premium (£60 per month).
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