"How many landlords have a copy of the EPC for existing properties within their portfolios? Or have updated EPCs to accurately reflect any improvements made over the years to a property."
As well as being an innovative, creative driving force in its own right, technology also has the ability to be highly reactive. This may seem like a something of an obvious statement but you might be surprised just how many technology providers, who may be seen as leading lights in their respective industries, do not have an in-built capacity, capability or flexibility to swiftly pivot and enhance their current propositions in line with shifting market demands.
In a market as multifaceted and fast-paced as the mortgage arena, the ability for technology and propositions to embrace change – at pace – which can make a real difference to the end user is imperative. This is especially apparent in areas which are commanding the growing attention of lenders, borrowers and intermediaries.
With a rising number of green mortgage options emerging across the residential and buy-to-let markets, this is an area whose profile will continue to escalate over the course of 2023 and beyond. Energy efficiency and Energy Performance Certificates (EPCs) are certainly posing a number of questions for landlords in wake of anticipated legislation which is likely to be introduced for all new and existing private rental sector tenancies from 2025 onwards.
With this in mind, it was interesting to see data from the Q4 2022 BVA BDRC Landlord Panel research report, undertaken on behalf of Foundation Home Loans, reveal a landlord community which is now far more engaged with Government plans for minimum EPC levels and what may be required to improve existing properties which are currently below level C.
The report highlighted that over two-thirds of landlords (68%) say they would now be less likely to purchase a property if it has an EPC rating of below C. Of those specifically looking to buy in the next 12 months, almost two-thirds (59%) said they would be looking to buy a property rated C or above, while 29% said they would be buying those rated D through to E. Landlords were also more likely to sell a property rated D-E over the next 12 months, rather than one rated A-C.
While the report also outlined strong awareness of the anticipated future requirements – 66% said they were aware and understood – there is still plenty of room for improvement with 25% stating that they did not understand the details, while 9% were not aware at all.
As outlined in this data, more and more landlords are now taking EPC ratings into account and activity making purchase decisions based on them, especially when taking into account how much it might cost them to improve these ratings. But how many landlords have a copy of the EPC for existing properties within their portfolios? Or have updated EPCs to accurately reflect any improvements made over the years to a property.
With such a progressive green focus evident, these are the types of questions proactive advisers could be asking their landlords clients. And it’s one of the reasons why we recently integrated the EPC register into our OMS platform as this provides our users with the ability to search EPC records by simply typing in the property's address.
This is the type of integration which quickly blazed a trail up our system enhancement agenda and its swift implementation demonstrates how vital it is for tech providers to be reactive when it comes to ensuring that they can better service the ever-shifting demands of their users in timely and effective manner.
