Around 1.5 million UK homes, which many mainstream lenders will not finance, are proving attractive to buy-to-let investors prepared for renovation projects. Research from specialist lender Together indicates that approximately 6% of Britain's 28 million residential properties fall outside standard lending criteria for numerous high street banks.
These properties can include thatched cottages, solid-wall homes, high-rise flats, and those with short leases. Houses near commercial premises or lacking workable kitchens and bathrooms may also be rejected for mainstream mortgages.
For buy-to-let investors, the potential rental income is a major incentive, cited by 35% of respondents as the primary attraction. Lower purchase costs also play a role, with 28% highlighting this as a key factor.
Ryan Etchells, chief commercial officer at Together, noted that these homes are often out of reach for ordinary buyers and represent a part of the wider housing supply problem. He added that there is a strong appetite among buyers willing to invest in improvements, though many are unaware of alternative finance options.