10th
Mar 2022
Latest research suggests many landlords are now opting to buy properties with EPCs of D and lower, so as to upgrade energy efficiency capabilities and make considerable capital appreciation if and when selling up, this is according to a specialist BTL mortgage lender.
The research also shows that 70 per cent of BTL landlords are now up to speed with the government’s net zero target that all rented properties must eventually have an EPC rating of A,B or C, with the majority of portfolio landlords only too aware of this.
The research also found that 68 per cent of landlords who took part in the survey, owned properties with weak EPC ratings of D,E,F and G, however 80 per cent have planned in upgrading their properties to at least a C.
The government’s current proposals include all new tenancies by 2025 must be C rated, and for those with ongoing tenancies the properties must achieve a C rating at least by 2028.
The mortgage broker claims that many landlords are now starting to welcome the targets as a real opportunity.
According to the survey’s results 53 per cent of landlords with 10 plus portfolios stated they are considering snapping up properties with a D or lower rating and upgrading them to at least a C rating.
32 per cent of landlords with a 4 to 10 property portfolio have the same intention but just 20 per cent of landlords with one or two properties would not opt to buy and upgrade new properties.
Paul Brett, managing director of the specialist mortgage lender, says: “Buying properties and making them more energy efficient will raise the value of the property and the rental income landlords can charge, as well as reducing tenant’s energy bills.
“A few extra thousand pounds spent at the buying stage will be an investment for the longer term.
“As awareness of EPC requirements and green mortgages improves, I expect to see many more landlords taking advantage of the lower rates offered by the green mortgage.”
Richard Merrick of PIMS,said: “Many of our members are ‘holding fire’ on upgrading their current properties as they are waiting to hear the final chapter of the government PRS EPC intentions.
Richard added:” At the end of the day it will no doubt cost tenants as landlords will have to offlay some of the costs of EPC upgrading and there is currently an ongoing consultation on the archaic rating system, so best to hold off until the final details are voted on and passed.”
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