In an era where the private rental sector (PRS) faces increasing scrutiny and higher tenant expectations, landlords are putting their money where their properties are—often quite literally. According to fresh insights from Paragon Bank, property owners are now spending an average of £8,500 annually to enhance and maintain their portfolios, with a particular focus on so-called "doer-uppers"—homes in need of significant TLC.

The study, based on a survey conducted by Paragon, reveals an intriguing trend: 44% of landlords are actively seeking out renovation projects, deliberately investing in properties that require upgrades. In contrast, only 25% expressed a preference for turnkey homes, those ready to rent with minimal intervention. Interestingly, 32% remained indifferent, open to either option depending on opportunity or circumstance.

Investment levels, unsurprisingly, scale with the size of the portfolio. Those managing a modest one to three properties are allocating around £3,500 per year, whereas landlords with four to 10 homes up their spending to £8,100 annually. But it’s the larger-scale investors—those holding 11 or more properties—who really open their wallets, averaging £11,800 a year on upgrades and refurbishments.

Louisa Sedgwick, Managing Director of Mortgages at Paragon Bank, highlighted the broader context: “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%.

“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 is a key facet of the Renter’s Rights Bill.”

And where, precisely, is this money going? For the majority, the interior takes precedence. A robust 65% of landlords have upgraded bathrooms, with 62% tackling kitchen improvements—areas that often tip the scale for tenant satisfaction. On the utilities front, a notable 76% have opted for new boilers, embracing energy efficiency where possible. Curiously, though, only 3% have ventured into the heat pump territory, perhaps deterred by the still-evolving economics and infrastructure of greener heating.

External enhancements also featured prominently: 50% have replaced windows, and 39% invested in new roofing or doors. Safety and structural integrity haven't been overlooked either. Tackling damp—a perennial British housing issue—was a priority for 54%, while 22% addressed more serious structural concerns.

Sedgwick further emphasized the financial mechanisms supporting this renovation wave: “This research showing that landlords spend substantial sums to improve their properties is supported by our own lending and our popular refurb-to-let product was developed precisely for this purpose.

“We often see borrowers take on extra funds when remortgaging and with the large number of mortgages set to mature this year, it’s a great time for brokers to discuss the options available to their landlord clients who might want to take the opportunity to invest in enhancing their portfolios.”

In short, what was once a sector known for passive income is now increasingly characterized by active investment and property improvement. As regulatory standards tighten and tenant demands grow sharper, landlords seem to be meeting the moment—not with hesitation, but with hammers, boilers, and budgets to match.