As rising property prices push down rental returns, more landlords are trying to profit from refurbishments. Here's one solution to financing the process

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Britain's growing army of private landlords are battling to maintain returns in the face of rising property prices. An almost certain increase in mortgage rates over the coming months isn't helping.

As a result, many are turning to refurbishments as a way of boosting total profits.

The strategy involves buying run-down homes and swiftly increasing their value by undertaking a radical refurbishment. Lenders say more landlords are now hoping to buy property in need of major work cheaply, with the intention of undertaking drastic refurbishment - adding more rooms in the process - before putting it on the rental market.

Refurbishment not only increases the value of the investment, landlords say, but also cuts down on long-term maintenance costs and attracts higherquality tenants who tend to stay put for longer.