Shawbrook, the specialist UK savings, development finance, and bridging finance bank, has noted the challenges faced by landlords with the new rules on EPCs (Energy Performance Certificate) coming into force in 2025. Under these regulations, all properties with new tenancies will be required to have an EPC rating of C or above from 2025 and by 2028 this will apply to all rental properties.
Writing in an article, Sales Director Emma Cox pointed out the difficulties this will bring for those that own older rental properties, as improving their energy efficiency may take considerable work. She also wrote that there has been little in the way of instruction given to landlords by the government in order to assist them with the necessary changes. However, lenders are now offering green mortgages to encourage landlords to make changes.
Last month, Shawbrook published data from its Changing Face of Buy to Let Report, showing that landlords are already starting to improve the energy efficiency of their properties. These findings showed that 17% of landlords and 22% of portfolio landlords (those with 4 or more properties), have already taken steps to improve the energy efficiency of their property. This includes replacing boilers, heating systems and windows and also installing new white goods, all of which can positively impact the property’s EPC rating.
Emma Cox, Sales Director for the Commercial Mortgages business within the Property Finance Division at Shawbrook Bank, wrote: “Overall the changes to EPC regulation are positive. We need to reduce the impact all our homes have on the environment, and the end goal should be the creation of better-quality housing stock that benefits each and every one of us.
However, some challenges remain for landlords getting to grips with the regulation.
With activity in the market showing little signs of a slowdown this December, it’s fair to say that we can expect activity in the property market to start off strongly in the New Year. And with new proposals from the Bank of England to relax mortgage affordability checks, we could see more buyers enter the market. Time will tell, however, if this move helps the first-time buyers it is designed to support, or further stokes house price inflation. 2022 is looking like an exciting year for the property market, and after a challenging 2021, I am looking forward to what comes next!”
Original article featured here…
Shawbrook recently published its research findings, showing that UK landlords are planning to expand their portfolios in the coming year. 34% of UK landlords plan to purchase at least one additional property and 14% are now looking to purchase more properties than they had originally planned.