Landlords who fail to properly maintain their rental properties could wipe as much as £75,000 off their investment new analysis warns as fresh regulatory pressures add to already stretched margins.
Research by Rushbrook & Rathbone shows the average landlord in England risks devaluing their property by up to £36,429 over a typical 10-year ownership period if upkeep is neglected. In London, the potential loss climbs to £75,000.
The figures are based on estimated buy-to-let values across each English region and an assumed 10% to 15% drop in value where properties fall into poor or neglected condition over a decade.
With the average buy-to-let currently worth £242,857, landlords who cut corners on management and maintenance could see between £24,286 and £36,429 wiped off the value of each property when they come to refinance or sell.
FINANCIAL EXPOSURE
In London, where the average buy-to-let stands at £500,000, a 15% decline equates to a £75,000 loss. Across the South West, landlords risk a hit of up to £52,381, while in the West Midlands the figure stands at £39,286 and £35,000 in the South East.
Even in lower-value regions, the potential losses remain significant. Landlords in the North East could see £28,481 erased from their asset’s value, and £25,000 in Yorkshire and the Humber.
The warning comes as landlords prepare for further compliance costs linked to the forthcoming Renters’ Rights Act and the evolving Decent Homes Standard.
CONISTENT CARE
Roma Sharma (main picture, inset), Managing Director of Rushbrook & Rathbone, says: “Property is a long-term investment but it’s one that requires consistent care and attention in order to perform at its best.
“Of course, it’s understandable that maintenance and management can sometimes be overlooked due to the cost involved, particularly as landlord profit margins have come under increasing pressure due to ongoing legislative changes.
“This is particularly true at present, with many landlords now facing further investment requirements to ensure their properties meet the evolving standards set by the Renters’ Rights Act, particularly the Decent Homes Standard.”
PROFESSIONAL MANAGEMENT
And she adds: “However, neglecting ongoing maintenance can gradually erode both the appeal and value of the asset, often resulting in a far greater financial impact in the long run.
“Proactive upkeep not only helps to preserve the condition of the property, but also ensures it remains competitive within the market, attracts reliable tenants, and ultimately allows landlords to realise its full value when the time comes to refinance or sell.
“Professional management plays an important role in this process, ensuring that maintenance is planned appropriately, issues are addressed early, and the long-term integrity of the investment is protected.”
