Your Business and Industry
EPC: Preparing landlords for the future
The future can be quite uncertain in terms of Government intervention on moving the minimum EPC level within the private rental sector to C, from either 2025 for new tenancies or 2028 for existing ones.
Since the government made their first announcement of their green agenda, we as lenders have worked incredibly hard to promote and educate brokers and landlords on what is coming around the corner but also to help them understand the benefits of making home improvements, adding value to the property, making the homes cheaper to run for the tenants and in turn making meaning that demand remains high and properties spend less time being vacant.
Our recent landlord research, conducted on Foundation’s behalf by BVA BDRC, shows we have seen a shift in terms of what is acceptable to landlords themselves when purchasing a property. Demand had understandably grown for those properties which are already at a Level C or above. According to the research, over seven in 10 (71%) of those surveyed said they would be unlikely to purchase a property with an EPC less than C. And, the more properties a landlord holds, the less likely they are to buy a property below C, possibly because they understand the cost that improving the EPC might require and how that might pressure their existing portfolio.
The awareness of what we believed the Government were going to introduce had grown significantly. 95% of all those landlords surveyed said they were aware of the EPC requirements – at least what they were likely to be – and they were reviewing the levels of their current properties with a view to moving them up if they happened to be D and below at the moment.
Advisors may want to issue a communication to all landlord clients on what is happening, but stress how it is unlikely to be the end of this issue. Plus, if you can contact them, highlight the existing EPC and what might be on offer if they improve it, then they will be in the know that Green mortgages are not going away and they can still be accessed. This is particularly pertinent for those coming up to renewal.
See our criteria for green mortgages here
It shows you understand clients’ portfolios, where they sit with their current finance needs, and how you can provide a solution which could save them money. Advisers still have an opportunity to help their landlord clients in this area, to show them the value of advice and to ensure they stay invested and keep their property fully tenanted for the future.
Contact your local BDM to see how they can support your new and existing cases.
*This article was originally published on Mortgage Solutions
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