There has been a steep annual enhance within the quantity of additional buy-to-let (BTL) borrowing used for bettering properties within the first half of the yr, Paragon Bank reveals.
Figures present that on the aim for brand new buy-to-let remortgages virtually £1.1bn was raised throughout 6,737 instances.
This represents a rise of 54% in financial phrases and a forty five% enhance within the variety of loans when in comparison with the identical interval in 2024.
The first half of 2024 noticed fairness valuing £712 million used for property enchancment in 4,632 remortgage instances.
The newest figures for the primary half of 2025 is the very best degree of remortgage-funded property enchancment by landlords for the reason that first half of 2022 when 8,032 remortgages launched £1.28bn in fairness.
This was 93% increased by worth and 74% by quantity in comparison with the corresponding interval a yr later when the full quantity of fairness withdrawn dropped to £662 million throughout 4,605 remortgage instances.
The figures align with analysis undertaken for Paragon’s Improving requirements and sustainability in privately rented properties report which illustrates how landlords have pushed substantial development within the proportion of privately rented houses classed as respectable.
A big proportion of landlords, 44%, undertake a method of buying houses in want of enchancment. In addition, landlords spend roughly £8,500 a yr, throughout their portfolios, making enhancements.
Paragon Bank director of mortgages Louisa Sedgewick says: “As we close to the three-year anniversary of the mini funds, we will look again at the way it has influenced landlord behaviour within the time since.”
“This knowledge reveals the way it had a really actual influence in the marketplace, curbing funding in bettering privately rented houses.”
“But it’s encouraging to see this recuperate over the previous couple of years and strategy the degrees recorded earlier than market turmoil.”
“This reaffirms the resilience of the market and reveals that landlords will reap the benefits of a relatively beneficial borrowing atmosphere to boost their propositions, leveraging fairness to make enhancements to their properties.”