Landlords are increasingly investing in improving the quality of rental homes, new figures suggest, helping to dispel the persistent myth that the buy-to-let sector resists spending on tenants’ living conditions.
Data from Paragon Bank reveals that in the first half of 2025, landlords released almost £1.1 billion through 6,737 buy-to-let remortgages to fund property improvements. This marks a dramatic rise on the same period in 2024, when £712 million was raised across 4,632 cases. The surge represents a 54% increase in value and a 45% increase in activity.
The trend is more than a financial story: it is reshaping the homes of millions of renters. Research underpinning Paragon’s Improving Standards and Sustainability in Privately Rented Properties report highlights that 44% of landlords actively buy homes in need of renovation, while the average landlord spends around £8,500 each year upgrading their portfolio. These investments have helped drive a significant increase in the number of rental homes meeting official “decent homes” criteria in recent years.
For many tenants, this means more than fresh paint or new kitchens. Improvements often focus on energy efficiency—better insulation, modern boilers, and double glazing—which reduce bills and make homes warmer. The push also aligns with government targets to decarbonise housing stock, with landlords facing pressure to meet tougher environmental standards.
The findings challenge a common public perception. Campaigners and media headlines often paint landlords as reluctant to reinvest profits, prioritising yield over tenants’ welfare. Yet housing analysts point out that landlords who improve their homes not only protect the long-term value of their investment but also reduce void periods and attract stable tenancies—benefiting both sides of the rental relationship.
Louisa Sedgewick, director of mortgages at Paragon Bank, says the shift is part of a broader recovery after the turbulence of the 2022 mini-budget, which temporarily froze landlord spending.
“It’s encouraging to see landlords returning to improvement activity, taking advantage of a more favourable borrowing environment,” she said. “This underlines the resilience of the market and demonstrates that landlords are willing to reinvest to enhance homes for their tenants.”
With more than 11 million people in the UK now relying on the private rented sector, the renewed focus on property upgrades could play a crucial role in tackling issues of substandard housing—helping to reshape both public perceptions and the lived experience of renters.