Property investors need to spend up to £15,000 to bring properties up to a Decent Homes Standard, a buy-to-let specialist has warned.
The government’s levelling up strategy targets bringing all privately rented properties up to scratch.
Max Armstrong of North East Property Investment, told The Telegraph that fixing up three bedroom homes would cost, on average, between £12,000 and £15,000.
Owing to the increased costs of materials and labour he added that this would have cost 25% less three years ago.
The government’s reforms will force investors to renovate nearly 800,000 properties.
There is a target to halve the number of poor-quality rentals in the next eight years.
However the National Residential Landlords Association warned the policy could drive landlords out of the market.
Chris Norris, director of policy and campaigns, said: “We don’t know the details of the policy yet, but I imagine a lot of it will come down to the standard of heating a property. This will pile pressure on landlords already contending with the cost of energy performance upgrades.
“It will be difficult for landlords to bring properties up to the new standard unless the Government finds a way to mitigate the cost.”