Have you got a buy to let? Are you aware of the changes regarding your property’s energy efficiency? Properties risk becoming ‘unrentable’ if landlords do not make the necessary changes required by 2025.
It may seem a long way off, but in the scheme of things, it’s not. And if you have properties that need substantial work to get their Energy Performance Certificates (EPC) rating to the required ‘C’ or above, you would be best to start thinking about these changes sooner rather than later.
A recent survey by our friends at Shawbrook Bank suggested that 15% of landlords surveyed had no knowledge of the upcoming legislative changes to EPCs.
From 2025, all newly rented properties will be required to have an EPC rating of C or above. Existing tenancies will have until 2028 to comply with the new rule changes. But what this does mean is that properties risk the potential of being declared ‘unrentable’ and possibly ‘unsellable’ or ‘unmortgageable’ due to landlords not acting on the possible impact these new requirements may have.
With a large proportion (36%) of landlords with properties built pre-1940, Shawbrook’s analysis suggests that a significant number of landlords will be required to make changes. And these changes could mean a loss of income whilst the necessary work is carried out, or in severe cases, landlords could find themselves unable to secure appropriate financial support to carry out the works.
Even today, some lenders are offering better rates to those with better EPC ratings, or once the landlord has improved the property. So financial benefits are also a key to getting properties up to the new requirements as quickly as possible and no doubt there will be more attractive offerings as time goes on. And of course, it’s not just the landlords that might have issues, as the tenants might also be affected as they compete for a possibly smaller number of EPC ‘C’ efficient properties in 2025. So, seek professional help and guidance early to ensure you don’t have to rush and panic closer to the deadline.