Landlords pulled £2.37 billion out of remortgages to pay for property improvements in 2025, with the total up 60 percent year on year, according to new Paragon Bank analysis of UK Finance data.
The lender said 14,817 buy-to-let remortgages were used to release equity for works last year, compared with 9,754 in 2024. That left the average loan at almost £43,000, a figure that points to larger upgrade programmes rather than minor patch-up work.
For landlords, the timing matters. The push comes as the Renters’ Rights Act raises the pressure on standards and as the next phase of EPC and wider property-condition compliance stays firmly in view.
Landlords use remortgaging to fund upgrade works
Paragon said the increase in equity release appears to track the sector’s growing focus on compliance and asset quality. In practice, that means landlords are using existing capital growth in their portfolios to pay for works now instead of waiting for rules to tighten further.
The bank said earlier research found 44 percent of landlords actively target homes in need of improvement and spend an average of £8,500 on each property. Common works include new boilers, kitchens, bathrooms and repairs to damp or structural issues.
That sits alongside Landlord Knowledge’s recent reporting on older storage heaters dragging some landlords on EPC scores and calls for Warm Homes funding to support private landlords. Taken together, the picture is becoming clearer: compliance spending is moving from a future issue to a current refinancing decision.
Paragon also said almost four in 10 landlords expect to refinance this year, rising to 57 percent among those with four or more properties. The bank argues that many landlords are trying to get ahead of future Minimum Energy Efficiency Standards and wider quality expectations rather than waiting until costs become more urgent.
Why EPC evidence could matter more after works
A weaker point in the data is what happens after the money is spent. Paragon said almost six in 10 landlords do not get a fresh EPC assessment after carrying out energy-efficiency improvements, which can leave them without clear evidence that a property has actually moved up the scale.
That matters for two reasons. First, landlords may not know whether they have done enough to support future compliance. Second, they could miss cheaper green finance options if the upgrade is never formally recorded.
Louisa Sedgwick, managing director of mortgages at Paragon Bank, said the figures showed landlords were using built-up equity to finance improvement work and suggested the Renters’ Rights Act was one factor behind the rise. The lender’s full release is available here.
What this means for landlords
- If you’re refinancing this year: compare standard remortgage pricing with any green or improvement-linked options before locking in.
- If you’ve already upgraded a property: consider a fresh EPC assessment so the work is properly reflected on record.
- Watch for: further detail on future EPC C expectations and how lenders price properties that can evidence completed works.
- Portfolio landlords: larger holdings may give more scope to release equity, but they also create more exposure if standards tighten quickly.
- Bottom line: more landlords are treating improvement spending as a finance decision now, not a problem to leave until 2029.
Editor’s view
This is one of the clearer signs yet that landlords are not simply sitting back and waiting for the next rules to land. The more interesting question now is whether those upgrade bills keep rising faster than lenders can make the numbers work.
Author: Editorial Team – UK landlord & buy-to-let news, policy, and finance
Published: 17 June 2026
Sources: Paragon Bank, UK Finance
Related reading: Older storage heaters may drag landlords on EPCs
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