Every BTL investment that is not in perfect condition needs a refurbishment budget. Getting that budget wrong is one of the fastest ways to turn a good deal into a bad one. Underestimate the cost and you run out of money before the property is lettable. Overestimate and you may pass on a genuinely good opportunity.
This article provides realistic refurbishment budgets for South Coast BTL properties and explains where your money is best spent.
The three levels of refurbishment
Most BTL refurbishments fall into one of three categories. Understanding which category applies to your property is the first step in budgeting.
Light cosmetic refurbishment
The property is structurally sound and habitable, but tired. The kitchen and bathroom are functional but dated. The decoration is worn. The carpets are old.
– Scope: Decoration, new flooring, light kitchen and bathroom updates
– Budget: GBP 5,000 to GBP 12,000
– Timeline: Two to four weeks
– Rent uplift: 10 to 15 per cent
This is the most common refurbishment level for BMV sourcing deals in Portsmouth. A property bought at GBP 210,000 with a GBP 10,000 refurbishment can rent for GBP 1,100 per month instead of GBP 950.
Medium refurbishment
The property is habitable but the kitchen and bathroom need full replacement. Some rewiring or replumbing may be required. The windows may need replacement.
– Scope: New kitchen, new bathroom, full decoration, flooring, some electrical and plumbing work
– Budget: GBP 15,000 to GBP 30,000
– Timeline: Six to ten weeks
– Rent uplift: 20 to 30 per cent
Properties at this level are common in the lower end of the Portsmouth market — Fratton, Buckland, and Stamshaw. A GBP 25,000 refurbishment on a GBP 180,000 purchase can produce a property worth GBP 220,000 to GBP 230,000.
Full renovation
The property is uninhabitable. Structural work, new heating system, full rewiring, new kitchen, new bathroom, new windows, and full decoration.
– Scope: Full strip-out and rebuild
– Budget: GBP 30,000 to GBP 60,000+
– Timeline: Ten to sixteen weeks
– Rent uplift: 30 to 50 per cent
Full renovations are higher risk but higher reward. They are more common in the Isle of Wight and Gosport markets where lower purchase prices leave room for the refurbishment budget within the overall capital requirement.
Where to spend and where to save
Spend on: Kitchen and bathroom
These are the two rooms that tenants care about most. A modern, clean kitchen and bathroom make the difference between a tenant signing and walking away. Budget GBP 4,000 to GBP 8,000 for a BTL kitchen and GBP 2,500 to GBP 5,000 for a BTL bathroom. B&Q, Wickes, and Howdens supply kitchens that are perfectly adequate for rental properties.
Spend on: Heating and insulation
A reliable heating system and good insulation reduce maintenance call-outs and improve the EPC rating. From 2025 onwards, new tenancies require an EPC rating of C or above. In older South Coast properties, you may need to budget for cavity wall insulation, loft insulation, or heating system upgrades.
Spend on: Decoration
Fresh paint in neutral colours is non-negotiable. It costs relatively little and transforms the property’s appeal to tenants. Budget GBP 1,000 to GBP 2,000 for painting a three-bedroom house.
Save on: Fittings
Tenants do not pay a premium for high-end taps, luxury flooring, or designer light fittings. Choose mid-range, durable options. A vinyl floor that looks good and lasts ten years is better than engineered wood that needs replacing in five.
Save on: Garden landscaping
A tidy, low-maintenance garden is sufficient for a BTL. You do not need decking, patio lighting, or planting schemes. Budget GBP 500 to GBP 1,000 for clearing and basic turf.
Typical budgets for South Coast properties
Two-bedroom terraced house, Portsmouth (light cosmetic):
– Paint and materials: GBP 800
– New carpet and vinyl: GBP 1,500
– New kitchen worktop and appliances: GBP 2,500
– Bathroom refresh (new suite): GBP 2,000
– General repairs and tidying: GBP 1,500
– Total: GBP 8,300
Three-bedroom semi, Fareham (medium refurb):
– Full kitchen replacement: GBP 5,000
– Full bathroom replacement: GBP 3,500
– Rewire and replumb: GBP 4,000
– Full decoration: GBP 2,000
– Flooring throughout: GBP 2,500
– EPC improvements: GBP 2,000
– Contingency (10 per cent): GBP 1,900
– Total: GBP 20,900
Three-bedroom house, Isle of Wight (full renovation):
– Full strip-out and skip hire: GBP 2,500
– Rewire and new consumer unit: GBP 4,000
– New heating system: GBP 4,500
– New kitchen: GBP 6,000
– New bathroom: GBP 4,000
– Plastering throughout: GBP 3,500
– New windows and doors: GBP 5,000
– Full decoration and flooring: GBP 4,000
– Contingency (15 per cent): GBP 4,800
– Total: GBP 38,300
Contingency: the most important budget line
Every refurbishment project throws up surprises. Hidden damp, old wiring that fails certification, a boiler that fails on the first test. Budgeting a 10 to 15 per cent contingency is not optional — it is essential.
If the contingency is not needed, you have a cost saving that improves your return. If you need it and did not budget for it, you have a cash flow problem.
Getting quotes before you commit
Before you exchange contracts on any property that needs refurbishment, get at least two quotes from local contractors. A quick visit with a builder will reveal costs that you cannot estimate from photographs.
In Portsmouth and Hampshire, reliable builders charge roughly:
– Decorating: GBP 150 to GBP 200 per room
– Kitchen fitting: GBP 1,500 to GBP 2,500
– Bathroom fitting: GBP 1,500 to GBP 2,000
– Rewire (three-bed house): GBP 3,000 to GBP 5,000
These are indicative. Always get fixed-price quotes in writing.
The Xelox Properties approach
Every deal pack we prepare includes a detailed refurbishment budget based on our local knowledge of Portsmouth, Hampshire, and Isle of Wight contractors. We do not guess the costs — we base them on actual quotes from tradespeople we work with regularly.
If you are looking for a BTL property that needs refurbishment and want realistic costings before you commit, we can help.
Contact Xelox Properties today to arrange a no-obligation conversation about how we can help with your property investment goals.