Offer finance for property maintenance

Why maintenance finance matters now

Property upkeep is not optional. Roofs leak, boilers fail and common areas wear out just when budgets are tight. Across the UK, rental income has grown since 2020, yet costs have grown too. Landlords are declaring repairs and maintenance more than almost any other expense, and finance costs now form a large slice of overall claims. In short, income may be up, but so is the price of keeping homes and buildings in good shape.

Industry data points to further pressure. Maintenance indices are forecast to rise through to 2030, with cleaning costs increasing faster due to labour constraints. At the same time, monthly repair and maintenance output can dip in step with wider construction slowdowns, making contractor availability and pricing less predictable. Insurance, contractor day rates and energy bills have been outpacing rent growth, squeezing margins. New rules around energy performance and renters’ rights are pushing upgrades that cannot be ignored.

Property services remain resilient, with management revenues climbing again and investment sentiment improving as capital values stabilise. That matters because rising asset values can unlock equity-based funding for essential works. But none of this removes the immediate cashflow challenge of paying for a new roof, a lift repair or a damp-proof course.

When costs rise while service expectations remain high, flexible finance becomes a practical tool. It allows you to schedule work when it is needed, not when budgets happen to align. Done well, funding maintenance can reduce downtime, protect rental income and safeguard asset value.

Good maintenance is not just a cost - it is protection for income, compliance and reputation.

Timely finance keeps tenants safe, insurers satisfied and properties rent-ready.

Next steps

• Identify urgent and high-impact repairs

• Decide the right funding tool for each job

• Compare total cost, not just headline rate

• Pre-qualify to shorten contractor lead times

Who is this for

If you manage or own UK residential or commercial property and want to keep standards high without straining cashflow, maintenance finance could help. Individual landlords, limited company landlords, resident management companies and block managers often face large one-off invoices for roofs, cladding, boilers and building services. Public or quasi-public bodies partnering with private managers also confront backlogs where staged funding can unlock work.

If your margins are tight, your service charge funds are committed, or your reserve pot is not sufficient for urgent defects, using structured finance can deliver repairs on time while preserving working capital.

Ways to fund essential works

1. Fixed-sum unsecured loan - spread the cost of mid-sized repairs

2. Secured loan or second charge - larger projects using property equity

3. Revolving credit facility - flexible drawdowns for ongoing minor works

4. Green upgrade finance - preferential terms for EPC and energy improvements

5. Invoice finance for property managers - bridge service charge cashflow

6. Insurance claim bridging - fund works pending insurer reimbursement

7. Grants and allowances pairing - combine finance with public incentives

8. Public-private maintenance frameworks - staged funding for multi-asset portfolios

What it means for your budget

Can you qualify?

Eligibility depends on your profile and the funding type. Lenders typically assess credit history, affordability and the stability of rental or service charge income. For unsecured loans, expect checks on personal or company credit, recent trading, and evidence of the works required. Secured options may require property valuations, existing mortgage details and proof of equity. For block and estate management, lenders often consider service charge budgets, arrears levels and reserve policies. Where upgrades improve energy performance, some providers look favourably on the projected efficiency gains.

Kandoo is a UK-based retail finance broker, which means we work with a panel of lenders to help find options suited to the scale and urgency of your project. We focus on clear terms, total cost transparency and practical timelines so you can get contractors on site without delay. Documentation is usually straightforward - identification, ownership or management evidence, quotes or scope of works, and, where relevant, planning approvals or warranties. Strong rent rolls, up-to-date insurance and compliant safety records can all strengthen an application.

From quote to funds

1. Outline the works and gather contractor quotes

2. Choose a funding route matched to scope

3. Share documents and complete affordability checks

4. Obtain indicative terms and total cost summary

5. Finalise lender application and e-sign agreements

6. Funds released to you or directly to contractor

7. Works commence with staged drawdowns if needed

8. Track spend and keep records for warranties

Weighing it up

Before you commit

Look beyond the headline rate. Compare total payable, fees, early repayment terms and whether the instalment profile matches the work schedule. Consider if a fixed or variable rate suits your risk tolerance, especially as maintenance indices are expected to rise while energy costs may fall over time. Align the funding term with the asset life of the repair - a roof or lift can justify a longer term than a minor repaint. If you plan to refinance as property values recover, check portability and settlement rules. Finally, pressure-test your budget against potential rent gaps, higher insurance premiums and contractor price changes so you keep headroom for the unexpected.

Alternatives to consider

1. Increase sinking funds or reserves ahead of major cycles

2. Negotiate staged payments and retention with contractors

3. Use service charge re-budgeting and Section 20 planning

4. Leverage insurance warranties and manufacturer finance

5. Explore local authority or grant-funded programmes

6. Consider sale-and-leaseback for commercial plant upgrades

FAQs

Q: Why finance maintenance if rental income is rising? A: Costs for repairs, finance and insurance have also risen. Funding lets you act promptly, protecting income and preventing small issues from becoming expensive failures.

Q: Fixed or variable rate - which is better? A: Fixed rates give payment certainty. Variable rates can be cheaper initially but add exposure to market changes. Choose based on budget stability and project duration.

Q: Can I fund energy efficiency works? A: Yes. Many lenders support EPC improvements with favourable terms. These upgrades can reduce bills, improve compliance and enhance tenant appeal.

Q: What if service charge income is delayed? A: Invoice finance can bridge timing gaps so you keep contractors mobilised. It is often paired with staged drawdowns to match project milestones.

Q: Will a secured loan affect my mortgage? A: A second charge sits behind your main mortgage and requires consent. It can lower monthly cost on larger sums but uses property as security.

Q: How quickly can funds be released? A: Smaller unsecured loans can be fast, sometimes within days. Secured facilities take longer due to valuations and legal checks.

How Kandoo helps

Kandoo connects you with a range of UK lenders to fund essential maintenance quickly and transparently. We compare options, explain total costs in plain English and help you choose terms that fit your property, timelines and budget. Speak to us for indicative terms before you book contractors.

Important information

Kandoo is a broker, not a lender. Finance is subject to status, affordability, terms and conditions and may not be available in all circumstances. Rates and product availability can change. Consider independent advice to confirm suitability.