Landlords Driving Improvements In Rental Market
At Castle Dwellings, we have seen many changes in the rental market, and many positive elements have been introduced by landlords. The industry is improving, and this is something that is shown by industry figures, as well as what we have experienced.
Over the past 15 years, the percentage of private rental property classed as “decent” by Government standards, has moved from 52.2% to 76.7%.
A new study carried out by Paragon Bank suggests it is landlords who are driving the positive changes. It is estimated around £839m is spent each year on improving rental property before letting to tenants.
Landlords want to have better rental property
Paragon spoke to around 900 landlords, and uncovered a number of interesting findings:
- 77% of landlords invest in rental property after buying
- The average spend on rental home improvements from landlords is £8,720 each
- The most common work undertaken is general painting and maintenance, cited by 67% of respondents
- The next most common work is electric or plumbing work, listed by 44% of respondents
- 37% of respondents say they have laid new flooring at their rental property
- 32% of landlords have installed a new kitchen or bathroom
- 24% of respondents have installed a new boiler
- 23% of landlords have upgraded the standard of windows at their rental property
The number of “decent” homes in 2006 was 1.4m, but it is now 3.6m. In the past 15 years, 1.4m buy-to-let mortgages have been approved.
Improvements in energy performance rating
The same study found there has been a 272% increase in PRS homes with an energy rating of C or above. There are 1.8m homes of this standard today.
Richard Rowntree, Paragon Bank Mortgages Managing Director of Mortgages, said: “Landlords typically will make significant improvements to a property before letting to tenants, helping to improve standards across the private rented sector. Landlords will of course benefit from this investment through capital appreciation, but it always results in better quality homes for tenants.
“There is a clear correlation between buy-to-let investment and improving standards in the quality of private rental homes. Standards of property in the PRS have increased significantly over that period. Overall homes in the sector are newer, larger, warmer and more energy-efficient than they were 10 years ago and tenants have more choice.”
Richard continued by saying; “Whilst we recognise more needs to be done to improve standards since 2009 there are nearly three times the number of properties with an energy rating of C or above, a 100% increase in the number of homes built after 1990 and a substantial expansion in the types of property available to rent in the PRS.”
We know the rental market has changed a lot, and will continue to change. If you want to make informed decisions in the marketplace, please get in touch with local experts.
If you plan on letting property, get in touch and we will arrange a property valuation for you. With offices in Castleford, Pontefract and Leeds, you will find Castle Dwellings is ideally placed to assist you, so get in touch today.