Benefits
The greatest benefit of installing energy efficiency measures in a residential property is the reduction of energy costs, this is especially important due to the current cost-of-living crisis.
Other benefits include healthier, more sustainable homes as well as a better EPC rating being linked to a higher property value. Reducing the cost of energy and increasing the EPC rating will make your property far more attractive on the rental market as well as receiving favourable interest rates from lenders.
Legislation
It is government legislation that all privately rented properties must have an EPC A-E in order to be let and the government have no intention of stopping there. Last year the government released a proposal to update the minimum legal EPC band for privately rented properties to EPC Band C or above by 2025 for new tenancies and 2028 for existing tenancies. This regulation will be governed by Local Authorities who will have the ability to fine landlords who do not comply with the regulations. These fines have been proposed to be as high as £30,000 for an individual property.
​
Having spoken with our stakeholders, some have advised us that multiple mortgage lenders have already been in touch to explain that properties not complying with the regulations will be in breach of their current loan agreements. Lenders are beginning to release favorable interest rates on properties that have an EPC rating C or above to incentivise landlords to improve their portfolios.
​
ESG requirements
Portfolios are now being assessed on their ESG credentials (whether the ESG requirements are internal or eternal). Portfolios with unfavourable ESG credentials run the risk of being down-valued in future valuations, whilst portfolios with good ESG credentials are likely to have increased value, as the pool of investors willing to purchase the properties is larger.
Funding
The current funding schemes available to landlords are not guaranteed in the future. It is highly likely that when funding stops, landlords will have to invest their own capital to meet the schemes requirements. If you are a landlord with a portfolio, we can assist you by taking advantage of all available funded schemes to make sure your investment is not only protected from the imminent regulation changes, but also to guarantee optimal performance of your portfolio.
Please get in contact for further information on the current schemes available and we can help.