Growing levels of investment into private rental sector
Summary
Paragon Bank reports a sharp rise in landlords remortgaging to release equity for property improvements, with borrowing for this purpose increasing 60% year on year. The article links this trend to anticipated compliance pressures from the Renters’ Rights Act and forthcoming energy-efficiency requirements, including the need for properties to reach EPC C or above by 2030.
Why it matters
Surveyors may see increased demand for inspections, condition assessments and advice on defects, energy efficiency and upgrade works as landlords invest to improve stock. The article also highlights a compliance gap where many landlords do not reassess EPCs after works, which can affect both regulatory readiness and valuation assumptions.
Key points
- Equity withdrawn for property improvements reached £2.37 billion in 2025, up 60% from 2024.
- The average remortgage loan for improvements was almost £43,000 across 14,817 remortgages.
- Landlord spending is being driven by energy-efficiency expectations and the Renters’ Rights Act, including the Decent Homes Standard.
- Paragon says many landlords do not obtain updated EPC assessments after improvement works.
- Future MEES requirements are expected to push further investment in sustainability-focused upgrades.
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