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Driving the energy efficiency conversation
In an ideal world, 100% of landlords would opt to deliver the most energy efficient property possible for their tenants.
The problem is that the vast majority of portfolios contain housing stock which was not constructed in the most energy efficient manner or can easily accommodate some of the more readily available environmentally friendly features.
Of course, there are various ways for properties to improve their EPC ratings – large and small - and with potential legislation still in the offing, this is clearly on the mind of landlords across the UK.
When looking at potential energy efficient upgrades over the next twelve months, up to half of landlord respondents in the Q1 2024 Pegasus Insight Landlord Trends research report have not ruled them out. Within this, 9% said they would definitely make energy efficient improvements to any of their lettings properties, 29% suggested this was a possibility, 10% were unsure while 50% said that they would not be making such improvements.
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For those who were planning on making positive changes, 67% said they would do so to improve the EPC rating of the property. For 48%, this formed part of an ongoing property maintenance/upgrade plan, 44% stated this was due to the likelihood of this being required by law in the future, 37% to make the property more appealing to prospective tenants and 32% to sure that the property adhered to current minimum EPC standards.
In addition, 29% thought that it would improve the value of the property, 28% said it was to replace old/faulty items, 20% to reduce damp/mould, 19% as part of a planned renovation and 4% due to a tenant request.
In terms of actual improvements, the top three improvements under consideration were loft insulation (42%), upgrade boiler/heating system (34%) and double/triple glazed windows/doors (26%).
This data indicates just how many landlords are evaluating the benefits attached to energy efficient improvements. Meaning that advisers will continue to play a key role in how, where and when these energy efficient measures are funded, with specialist lenders - such as Foundation Home Loans - forming an increasingly integral part of this conversation.
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