To keep the market moving and provide the types of properties people actually want to live in, we also need to make better use of the stock we already have.

Across the country, there are properties that are either sitting vacant or no longer fit for modern living.

Some are structurally sound but dated. Others need significant reworking to meet energy standards, tenant expectations or broader planning requirements.

Unlocking the potential of these buildings is one of the most immediate and effective ways to relieve pressure in the housing system. Increasingly, that means looking at refurbishment on a more ambitious scale.

From cosmetic to structural

The classic ‘doer-upper’ is a familiar play for seasoned investors. But what we are seeing now goes well beyond a new kitchen or fresh paint.

Investors are looking to rework the very fabric of their properties, creating homes that are energy efficient, adaptable, and aligned with how people want to live today.

A number of factors are driving this shift.

In the rental sector, EPC legislation, operational costs, and the expected reforms under the Renters’ Rights Bill are prompting landlords to reassess the long-term viability of their portfolios.

At the same time, tenant expectations are rising. Space optimisation, well-insulated layouts and strong energy performance are no longer differentiators. They are minimum requirements.

For first-time buyers, the demand is similarly practical. Buyers want homes that are ready to live in and built with longevity in mind.

This is where heavy refurbishment comes into its own. Whether converting commercial units into high-spec flats, reconfiguring HMOs to maximise function and compliance, or extending existing footprints to add value, these are the projects that can make a meaningful difference both for investors and for the market more broadly.

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Funding needs to reflect the ambition

As the nature of refurbishment has evolved, funding has had to evolve with it. These are not light-touch renovations. They require structured support, managed risk and lenders who understand the nuance and timescales involved.

At Hampshire Trust Bank, we have reviewed our heavy refurbishment proposition to ensure it continues to reflect the realities on the ground.

Our maximum day one LTV has increased to 75%, in line with our standard bridging product.

For cases where the loan-to-GDV sits at or below 65%, we can now fund up to 100% of the property’s day one value for refurbishment costs.

Crucially, heavy refurbishment is not a box-ticking exercise.

Every deal comes with its own pressure points, timelines, and sensitivities. Our structure supports that with drawdowns in arrears, oversight from an asset manager, and direct access to our underwriting and lending teams throughout.

It is a practical, hands-on approach, designed to support brokers delivering complex cases with confidence.

A changing role for brokers

As investor strategies become more sophisticated, the broker’s role continues to grow in importance.

For many, heavy refurbishment is not a one-off play but part of a wider plan, with clear transitions from bridge to term, or from refurbishment to refinance.

Brokers are the ones connecting those dots, ensuring the right funding is in place not just for this phase, but for what follows.

The right lender should recognise that context. These projects often sit at the intersection of experience, regulation, and ambition.

They cannot be packaged up and delivered off the shelf. They need structure and support that reflects the bigger picture.

Heavy refurbishment has become more than a strategy for unlocking individual value.

Done well, it plays a genuine role in improving the quality and liveability of the housing stock we already have.

It gives investors a way to create something better and gives the market an opportunity to move forward with greater flexibility, resilience, and purpose.