Around 44% of landlords prefer buying some properties needing some form of improvement, research shows.
A survey from Paragon, which surveyed around 500 landlords, found that only a quarter are more likely to buy properties that are ready to rent.
Around a third of landlords said they have no preference for properties in need of improvement or not needing improvement.
Paragon noted that in addition to general maintenance, annual investment in property improvements averages around £8,500 across portfolios.
Investment varies among landlords but tends to grow with portfolio size, with those who have between one and three properties spending around £3,500 per year on average, which goes up to £8,100 among landlords with 4-10 properties.
Landlords with 11 or more properties have an average annual investment figure of around £11,800.
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Internal renovation is a popular improvement, with 65% and 62% of those surveyed opting for new bathrooms or new kitchens.
Just over three-quarters of landlords have installed new boilers, which compares to around 3% of landlords who have chosen heat pumps.
Around half of landlords have installed new windows, with one in four replacing a roof or external doors.
More than a quarter have landscaped a garden and 6% have extended a property.
Over half say they have remedied damp issues and 22% have addressed structural issues.
Louisa Sedgwick (pictured), managing director of mortgages at Paragon Bank, said: “The findings of our research align with official government data showing how the last 15 years has seen the proportion of private rented sector 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 Renters’ Rights Bill.”
She added: “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.”
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