Property investors seeking EPC 'D' rated properties for upgrade opportunities

68% of landlords currently have properties with an EPC rating of D or lower, however, the majority of those (80%) intend to make changes to bring their properties up to at least a C rating, according to research from Landbay.

Related topics:  Mortgages
Rozi Jones
4th March 2022
house renovation home first-time buyers ftb
"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 tenants' energy bills."

 

 

 

 

 

Additionally, some landlords are viewing these changes as an opportunity, especially those with larger portfolios of 10 properties or more. 53% of these landlords said they would consider buying homes that were D rated or lower and bring them up to at least a C rating.

This compares to 32% of portfolio landlords with four to 10 properties who would do the same but only 20% of non-portfolio landlords would choose to buy and upgrade.

For those landlords who know about the proposed EPC changes and are also aware of green mortgages, 84% of them like the incentive of a discounted interest rate.

Currently, the proposals are that new tenancies must be C rated by 2025 and for existing tenancies it is 2028.

Previous research from Landbay found that seven out of 10 buy-to-let landlords are aware of government proposals that all rental properties must have an EPC rating of A, B or C.

Paul Brett, managing director of intermediaries at Landbay, said: “Our survey shows that most landlords are aware of the potential new EPC rulings by 2025 and many will have to upgrade their properties to a C rating. Some of them, especially the larger portfolio landlords with 10 or more properties, are looking at how they can turn this to their advantage.

“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 tenants' 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.”

More like this
Subscribe
to our newsletter

Join a community of over 30,000 intermediaries and keep up-to-date with industry news and upcoming events via our newsletter.