Landlords risk losing up to £59,000 in property value if they fail to maintain their rental properties adequately, according to new research from property management specialist Rushbrook.
The analysis applied an estimated capital value impact of between 10% and 15%, based on the effect that poor maintenance can have on market value. With the average buy-to-let property across England valued at £201,145, a 10% reduction would equate to a loss of £20,115, whilst a 15% reduction would result in a £30,172 decrease.
Regional variations
The financial impact is most pronounced in London, where the average landlord property is valued at £390,625. Failing to maintain a rental property in the capital could reduce its value by between £39,063 and £58,594, the research suggested.
The findings come as landlords face increasing operational costs and regulatory complexity in the rental sector. Recent developments, including shifts in the lettings platform market, have highlighted ongoing changes across the industry.
Cost management versus maintenance
Roma Sharma, Managing Director of Rushbrook, said: “Landlords have faced a considerable increase in the cost and complexity of operating a rental property in recent years and so it’s understandable that many will be looking closely at where they can reduce expenditure.”
She added: “However, there’s an important distinction between sensible cost management and creating a false economy, and property maintenance is one area where delaying expenditure can end up costing considerably more in the long run.”
According to Sharma, minor issues identified and dealt with quickly can often be resolved efficiently, whereas allowing them to deteriorate can result in larger repair bills, tenant disruption and overall property deterioration.
The research comes amid wider changes in the rental market, including regional variations in rental supply and evolving regulatory frameworks affecting landlords across different areas.
Sharma concluded that a rental property should be viewed as a long-term asset, with professional maintenance standards fundamental to protecting both current income generation and future capital value.
