Landlords who neglect maintenance and management risk significantly eroding the value of their investment, according to new analysis carried out by property management specialist Rushbrook & Rathbone.
Their research suggests the average landlord in England could reduce the value of a buy-to-let property by as much as £36,429 over a typical 10-year ownership period if they fail to invest in regular upkeep and maintenance. In higher-value markets such as London, the potential loss could reach as high as £75,000.
The analysis looked at current average buy-to-let property values across England and the estimated impact of allowing a property to fall into a neglected or poorly maintained condition over a 10-year period. It assumes a potential depreciation of between 10% and 15% if maintenance and management are neglected.
With the average buy-to-let property currently valued at £242,857, upkeep failures could see the value of each property fall by between £24,286 and £36,429 by the time they sell their investment.
Financial impact varies significantly
However, the financial impact varies significantly depending on its location. In London, where the average buy-to-let property value is around £500,000, a similar level of neglect could lead to a potential loss of £75,000.
Other regions also result in notable reductions in value. In the South West, failure to maintain a property could reduce its value by as much as £52,381. In the West Midlands, average falls are £39,286, while landlords in the South East could see values come down by around £35,000.
Even in more affordable areas, the impact remains significant. In the North East, the potential loss is estimated to be £28,481, while in Yorkshire and the Humber, landlords risk seeing around £25,000 wiped from the value of a property if it is poorly maintained.
Roma Sharma, Managing Director of Rushbrook & Rathbone, says:
Investment properties require consistent care and attention
“Property is a long-term investment, but it’s one that requires consistent care and attention in order to perform at its best,” she said.
“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.”
