Landlord Energy Audits
Proposed Law Change. Although at the moment it has not been made law. The government has previously proposed that from April 2025, a property will require an EPC rating of C or better for newly rented properties in England and Wales. The intention of the Government is that they will then apply the same rules for existing tenancies from 2028.
So what is the current situation with your rented properties? Do you have properties that would be affected if these rules became law?
We can help. We provide enegy audits on property. We will show you where you are now and how you can get your properties to a ‘C’ in the most cost effective way, so that you can take an informed decision about how you move forward.
Act Now. Don’t leave it too late. We are only a few years away from this potential law change. Allow yourself to make informed decisions about your properties. Do you improve, or do you sell?
With the various issues going on at the moment, with changes in leadership at Westminster and the need to tackle Inflationary pressures. It is possible that the regulation changes may get delayed. One thing for sure, though, with the climate agenda, at some point these rules will become law. Landlords have a large amount of work to do, if they are to get their properties up to the new standard. So use the next few years wisely, give yourself as many options as you can. If you have enough time to implement changes and can spread the cost over a number of years, then it might not seem so bad, but if you leave it too late, then the whole issue just might seem too much and you may feel your only option is to sell. If too many leave it too late, then there may be a large number of properties go on the market around the same time, which is never good as a seller. Use this time wisely to make your properties more attractive to tenants, who are taking much more interest in the running cost of properties that they are looking to rent. The worst you are doing is investing in your assets.
Give us a call now to discuss your requirements. For the low cost of us providing energy audits on your properties. Act now and stay ahead of the game. Allow yourself to plan, not panic!
What are the Proposed Changes to EPC’s?
The main proposed changes are:-
- Minimum EPC rating to be raised from E to C.
The plan is to enforce this from 1 April 2025 for new tenancies, and from 1 April 2028 for existing tenancies.
- Cost cap to be raised from £3,500 to £10,000 per property
The government says this would be sufficient to bring more than 90% of D-rated properties up to a C rating, as well as nearly 60% of E-rated properties. It’s not clear whether existing spending would count towards the new cap.
- “Fabric first” policy to be introduced
This would control in which order work is carried out, so improvements to the fabric of the building (ie insulation, windows and doors) must be done before additional measures such as new heating systems are installed.
The exemptions would remain largely unchanged. Additionally, the proposals recommend clarifying the rules for listed buildings and those in conservation areas, and introducing a central database of compliance and exemptions.
Why Act Now?
It makes sense to start planning now:-
1: Beat supply shortages
It’s already hard finding good tradespeople. When new rules are announced, there is likely to be a rush to book tradesmen and order materials, further increasing lead times and prices.
2: Spread the cost
By starting now, you can spread the cost rather than suddenly facing a large bill just before the deadline. This will also give you more time to seek additional funding, such as grants. It may be that you decide to borrow to make improvements. Acting now before the rules change could make sense. It may be that you have problems borrowing on a property after the rule changes, if your property doesn’t meet the new rules. Speak to our fee free mortgage advice service
3: Increase flexibility
The “fabric first” principle, if approved, would restrict what work you could do. For example, if you want to upgrade the heating system, you might be unable to do so until you have improved insulation or replaced windows. If you can get the property up to a C rating now, then these measures will not affect you.
Why upgrade your property?
Nonody likes spending their hard earned money, but there are benefits to investing in your property and improving your EPC rating.
1: Add value
When other factors are excluded, properties rated B and C sell for around 5% more than those rated D.
2: Reduce bills, increase rent
In simple terms, if tenants spend less on energy bills, they can afford to pay you more rent. Lower bills will also make it less likely that your tenants get into arrears. Plus, of course, a warm and comfortable home means happier tenants.
3: Protect your property
Keeping a property warm and dry will tend to make it less prone to condensation, damp and mould. Always take professioanl advice before committing to Insulation measures.