With six weeks until the Renters’ Rights Act lands, a new-build pipeline moving at less than a snail’s pace, and a generation of homeowners who have run the numbers and said: “Pfft. We are absolutely not moving,” there is a clear theme.
Whatever type of property client is walking through your door right now, chances are they want to talk about refurbishment.
But why is refurbishment such a compelling move for your clients in 2026?
The Property Investor
With 2.5 million rental properties sitting below EPC Band C and the Renters’ Rights Act landing on 1st May, many landlords are looking to future-proof their portfolios by investing in their properties through refurbishments. For some that means energy efficiency upgrades and bringing their properties up to the Decent Homes Standard – for others, it’s a full value-add refurbishment to maximise yield.
And for those looking to grow, there’s opportunity too. Auction stock is increasing, meaning more properties with potential for those willing to do the work. Buy, refurbish, refinance onto a better rate, and go again.
I think it’s fair to say, contractors are about to become a very hot commodity. So, the savvy are moving now before availability evaporates and a builder’s quote will soon require a sit-down with a stiff drink.
The Property Developer
Instead of wrestling with planning committees and soaring build costs, many property developers are increasingly repurposing existing stock – turning a depressing office block into a residential goldmine, for example.
Compared to starting from scratch, these conversion projects make more sense from a planning perspective too, with developers utilising Permitted Development rights to skip the planning circus. PD rights do the heavy lifting on the paperwork, and having a structure already standing helps when material costs are insane.
Refurbishment and conversion projects are giving developers a clearer, faster route to profit, and development finance is well suited to this type of project. Staged drawdowns tied to verified progress, with a lender willing to engage early and stay close throughout.
The Homeowner
If your client is a homeowner, it’s likely they have looked at stamp duty, estate agent fees, and the price of the house they actually want and decided adding an extension is often much more cost effective, especially if they’re sitting on a mortgage rate that feels too good to touch.
A second charge or secured loan allows homeowners to fund improvements without disturbing their existing mortgage, which, in many cases, is exactly what they want.
Where the project is bigger: a conversion, or a property that needs significant work before it’s habitable, a regulated bridging loan steps in.
And when they are ready to sell, they’re sitting on more equity – a well-refurbished home commands a stronger asking price.
The Broker Opportunity in 2026
Refurbishment is no longer a niche corner of the specialist finance market. It’s become one of the primary drivers of activity across bridging, development and specialist mortgage sectors simultaneously, and the macro conditions pushing that demand (EPC compliance pressure, planning shortfalls, affordability constraints, legislative change) aren’t going away.
How Masthaven Finance can help
The cases that look complicated on the surface are often the ones where the right lender makes all the difference. If you have a refurbishment case you’d like to discuss – whether it’s a straightforward EPC upgrade or something more complex like a conversion in staged drawdowns, the team is on-hand to support your client.
As always, if you have any enquiries you’d like to talk through, complex circumstances or otherwise, we’re happy to help.
