The number of landlords remortgaging to release funds for property improvements has surged over the past year, new figures show.
Industry data covering the first half of 2025 reveals that nearly £1.1 billion was raised through 6,737 remortgages specifically for property upgrades. That compares with £712 million across 4,632 cases during the same period in 2024 – representing a 54% increase in value and a 45% rise in the number of loans.
This is the highest level of equity-funded improvements since the first half of 2022, when 8,032 remortgages released £1.28 billion. The following year saw a dramatic fall, with equity withdrawn dropping to £662 million across 4,605 cases, as the surge in borrowing costs after the mini budget forced landlords to opt for less flexible product transfers with their existing lenders.
Since then, activity has gradually returned as borrowing conditions improved, with landlords increasingly using remortgaging as a way to enhance their portfolios.
INVESTMENT IN QUALITY
The figures mirror research published in Paragon Bank’s Improving standards and sustainability in privately rented properties report. The study found that 44% of landlords pursue a strategy of acquiring homes in need of refurbishment, and collectively spend an average of £8,500 a year on improvements across their portfolios.
Louisa Sedgwick, Paragon Bank managing director of mortgages, said: “As we near the three-year anniversary of the mini budget, we can look back at how it has influenced landlord behaviour in the time since.
“This data shows how it had a very real impact on the market, curtailing investment in improving privately rented homes.
“But it’s encouraging to see this recover over the past couple of years and approach the levels recorded before market turmoil.
“This reaffirms the resilience of the market and shows that landlords will take advantage of a comparatively favourable borrowing environment to enhance their propositions, leveraging equity to make improvements to their properties.”
The rebound suggests that, despite tighter regulation and rising costs in the rental sector, landlords are seeking to maintain standards while positioning themselves for stronger long-term returns.
