There has been a steep annual enhance in the quantity of additional buy-to-let (BTL) borrowing used for enhancing properties in the primary half of the yr, Paragon Bank reveals.
Figures present that on the aim for 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 in the variety of loans compared to 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 because the first half of 2022 when 8,032 remortgages launched £1.28bn in fairness.
This was 93% larger by worth and 74% by quantity in contrast to the corresponding interval a yr later when the full quantity of fairness withdrawn dropped to £662 million throughout 4,605 remortgage instances.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 progress in the proportion of privately rented houses classed as respectable.
A big proportion of landlords, 44%, undertake a technique of buying houses in want of enchancment. In addition, landlords spend roughly £8,500 a yr, throughout their portfolios, making improvements.
Paragon Bank director of mortgages Louisa Sedgewick says: “As we close to the three-year anniversary of the mini funds, we are able to look again at the way it has influenced landlord behaviour in the time since.”
“This information reveals the way it had a really actual influence in the marketplace, curbing funding in enhancing 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 make the most of a relatively beneficial borrowing atmosphere to improve their propositions, leveraging fairness to make improvements to their properties.”
