Landlords risk losing £30k through property negligence

Landlords risk losing £30k through property negligence


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Landlords who fail to adequately maintain their rental property could see as much as £30,172 wiped from its value, it’s being claimed.

Property management firm Rushbrook analysed landlord-specific property values across each region of England and applied an estimated capital value impact of between 10% and 15%, based on the potential impact that a neglected or poorly maintained property can have on its eventual market value.

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Using this formula the average landlord property across England is worth £201,145. 

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A 10% reduction in value as a result of poor maintenance would therefore equate to a loss of £20,115, whilst a 15% reduction would see the average landlord’s investment fall in value by as much as £30,172.

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The potential financial impact is greatest in London, where the average landlord-specific property value stands at £390,625. 

Based on the same 10% to 15% range, failing to adequately maintain a rental property could reduce its value by between £39,063 and £58,594.

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Even across England’s more affordable rental markets, the potential cost remains substantial. 

The maximum estimated impact stands at £26,163 in the East Midlands, £22,959 in the North East, £21,226 in Yorkshire and the Humber and £21,196 in the North West.

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Rushbrook believes that, at a time when landlords are facing increasing operational and regulatory costs, ongoing property maintenance is one area where cutting expenditure can prove to be a false economy. 

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