ONS English Housing Survey data reveals that that the proportion of non-decent homes in PRS fell from 44% to 24.5% over the last decade. This change has been due to the impact of New Build PRS developments and increased levels of refurbishment.
A property was deemed ‘non-decent’ as a result of a lack of modern facilities, inadequate heating or insulation, disrepair or posing a hazard under the Housing Health and Safety Rating System.
As a result, the survey has found that the vast proportion (84%) of private renters were satisfied with their current accommodation.
A recent survey of more than 700 property investors that had recently undertaken refurbishment works asked whether they did so to improve the property or to improve the quality of the accommodation for tenants.
The survey was undertaken for InterBay Commercial, a division of OneSavings Bank, and determined that 70% of them did so to improve the property, either to improve presentation or to improve the quality of the accommodation for tenants. 45% of the landlords did so to increase capital value or yield. Around 74% said it improved the property’s value and 82% saw rental income rises by an average of 8%.
Samantha Powell, National Portfolio Landlord Manager – Prsim, commented that “The survey echoes Prsim’s experience when dealing with tenants, confirming that landlords that invest wisely in improving their properties let their properties faster, have fewer voids and achieve higher rents.
We believe that landlords should regularly review their stock and upgrade where necessary to keep up with the rising expectations of tenants across the UK.
At Prsim we offer an investment health check which includes both assessing the property to ensure the property meets the high standards required to enable a higher yield.”