"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"
- Roma Sharma - Rushbrook & Rathbone
Landlords who neglect ongoing upkeep risk devaluing their properties by as much as £75,000 over a typical ownership period, according to analysis by property management firm Rushbrook & Rathbone.
The research examined the potential depreciation caused by neglected or unmaintained properties over an average 10-year ownership period, based on current buy-to-let valuations across England and an estimated value reduction of between 10% and 15% for properties that fall into poor condition.
With the average buy-to-let property currently valued at £242,857, landlords who fail to maintain their portfolios could see each property lose between £24,286 and £36,429 by the time they exit. In London, where the average buy-to-let is valued at £500,000, that potential loss rises to £75,000.
The picture varies considerably by region. In the South West, poor upkeep could reduce a property's value by as much as £52,381, while in the West Midlands the figure stands at £39,286 and in the South East at £35,000. Even in more affordable areas, the risks are significant. Landlords in the North East and Yorkshire and the Humber could lose up to £28,481 and £25,000 respectively through inadequate maintenance.
The findings come as landlords face growing financial pressure from incoming legislation, including the Renters' Rights Act and its Decent Homes Standard requirements.
"Property is a long-term investment, but it's one that requires consistent care and attention in order to perform at its best," said Roma Sharma, managing director of Rushbrook & Rathbone. "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."
"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."
