As most landlords know, a myriad of myths has built up around the private rented sector and one that seems to stick more than others is that the tenure is the home of poor-quality property.

Such a view discredits the vast majority of landlords that invest in their properties; those who make sure they are providing a good home for their tenants.

I am proud to say that the private rented sector has seen a significant improvement in the standard of homes over the past 15 years, but it can’t seem to shift its reputation as the second-class citizen of housing.

In 2008, 44 per cent of homes in the sector were defined as non-decent, while today that figure stands at 23 per cent. 

This is a significant reduction and demonstrates the positive impact that landlords have had on the sector.

The number of properties classed as non-decent has fallen from 1.4m to 990,000 over that period, a 29 per cent reduction. 

At the same time, the number of privately rented homes classed as decent has risen from 1.8m in 2008 to 3.3m in 2021 – an 83% per cent increase. This is a clear indication that the standard of homes in the sector has improved.

Our recent survey of over 500 landlords has highlighted how they have helped drive this improvement by upgrading the property they purchase.

The results from our survey found that 81 per cent of landlords make improvements on every property they add to their portfolio. 

This demonstrates that landlords take pride in their properties and are committed to providing good quality homes to their tenants. In fact, 83 per cent of landlords said they make improvements to ensure they are providing a good quality home to tenants.

The research also found that 22 per cent of landlords spend over £25,000 on upgrading a new portfolio property, with 18 per cent spending between £10,000 and £20,000. 

On average, landlords expect to see a 19.8 per cent increase in the property’s value after completing upgrade work, with a 16.5 per cent increase in expected rental income.

It’s also interesting to note that 40 per cent of landlords prefer to purchase property in need of refurbishment, with 21 per cent opting for properties that are ready for tenants to move into.

The most common improvements that landlords make include painting and decorating, installation of a new bathroom or kitchen, and a new boiler. 

These improvements not only make the property more attractive to tenants but also improve its energy efficiency, with 47 per cent of landlords upgrading their property for this reason.

Overall, landlords have played a vital role in raising the standards of privately rented property. They have not only improved the quality of homes available to tenants but also contributed to the reduction of non-decent homes in the sector.

More clearly needs to be done and the Government is currently consulting on introducing a Decent Homes Standard for the PRS. At Paragon, we would certainly like to see Local Authorities use the powers already available to them to challenge the rogue elements that bring the name of the sector down.

Buy-to-let lenders also contribute to this improvement by acting as a natural barrier to poor quality property entering the sector. We employ our own team of surveyors and they ensure we lend on homes that pass a decent standard level.

We are committed to supporting landlords in providing good quality homes to their tenants, and our full report, Raising the standards of privately rented property, provides further insights into this topic.

* Richard Rowntree is Managing Director of Mortgages at Paragon Bank *