New data from Rushbrook indicates that poorly maintained rental properties could significantly impact their value. Landlords in London could see nearly £60,000 wiped off their investment due to poor maintenance.
Across England, the research found that landlords could lose up to £30,172 from the value of an average buy-to-let property if it is not properly maintained. This is based on an estimated capital value impact of between 10% and 15%.
The average landlord property in England is valued at an estimated £201,145. A 10% drop in value due to poor maintenance would equate to £20,115, while a 15% fall could cost landlords £30,172. In London, where the average landlord property is worth £390,625, a 10% to 15% drop could reduce its value by £39,063 to £58,594.
Other regions also face substantial potential losses. In the South East, the impact could reach £42,857, while the South West could see up to £34,286 wiped off property values. Even in more affordable rental markets, the estimated impact remains significant, with potential costs of £26,163 in the East Midlands and £22,959 in the North East.
Roma Sharma, managing director of Rushbrook, stated that property maintenance is crucial for protecting investment performance. She explained that delaying expenditure on minor issues can lead to larger repair bills and a deterioration in the property's overall condition and value over time.