0:05 AM, 16th October 2024, About a month ago 7
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The government’s ambitious target of requiring all private rented sector (PRS) properties to have an Energy Performance Certificate (EPC) rating of C or above by 2030 has sparked huge concern among landlords.
Research from Shawbrook Bank reveals that with just over five years to comply, many landlords are grappling with the costs and challenges of upgrading their properties to meet the new standards.
It found that 78% of landlords are concerned about the new EPC regulations, with 29% stating that the targets are only achievable with government support.
Also, 16% of landlords admit they would struggle to afford the expenses, and a quarter indicate that they may sell properties that need extensive upgrades.
Shawbrook’s MD of real estate, Emma Cox, said: “Our experience has shown that landlords overall are motivated to improve their properties.
“In 2022 we saw many take steps to do so both in response to demand from their tenants, and the-then targets from the government.
“However, when these targets came into question, at a time of significant economic headwinds, many chose to hold off on costly renovation projects.
“With these targets back in place, landlords now must play catch-up.”
While some landlords have already taken proactive steps to improve their properties’ EPC ratings, the majority still have work to do to meet the 2030 deadline.
The survey found that 22% of landlords have already upgraded their properties to a C rating or above, and over a fifth have made some changes to increase their EPC rating.
However, many landlords are facing significant hurdles, including rising costs of materials and labour, which have increased substantially in recent years.
Ms Cox said: “It’s encouraging to have greater clarity from the government which will allow landlords to put in plans in the run-up to 2030, but with just over five years left to comply it’s clear that landlords will need support to get there, both from the government and the industry.
“When you consider the housing stock in the UK, much of which was built prior to 1950, the extent of the challenge is clear.
“According to the English Housing Survey, 12% of the private rented sector is currently rated E to G.”
She adds: “It’s also worth acknowledging that the cost of improvements is consistent nationwide, but the impact is disproportionately higher for landlords with lower-value properties, making a £10k investment far more burdensome in the North than in London, for example.
“Having a quality, energy-efficient, professional private rented sector is critical, particularly at a time when homeownership and access to affordable housing remains challenging. But this must be achieved with the support from government and industry.”
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Suicide Jockey
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Sign Up10:07 AM, 16th October 2024, About a month ago
I will be selling my properties which are all a rating of D two years before the deadline. The upgrading cost to me is just not viable business sense. I would rather take the CGT hit and see what I'm left with to invest elsewhere. It's a shame because three families will have to find a new property to rent even though the properties they live in now are not cold or damp houses. But Labour don't see it that way and the joke that is 'Milliweed' will never climb down of his hobby horse which is the net zero nonsense, so goodbye from a decent landlord to all of his flawed socialist ideology rubbish.
Derek And jen
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Sign Up10:14 AM, 16th October 2024, About a month ago
Our families portfolio will probably be joining you as well.
feel sorry for the banks ! - wonder where they will make all their juicy returns from next ? - may mean them increasing int rate across all standard home mortgage loans - as no more BTL to feast on ? - just a thought .
so less homes for rent
and
increased home loan costs for homeowners .
laws of stupidity and unintended consequences again - this is what happens when you interfere with natural free markets.
Christopher Butcher
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Sign Up13:21 PM, 16th October 2024, About a month ago
We bought and developed a house in Cornwall ten years ago. It had included extra thick celotex and triple glazed windows. The whole house was rebuilt to the highest standard. Recently we have tried to sell due to the oncoming CGT increase. We were shocked to hear we are an EPC D. I argued and was told "sorry as you have oil central heating you will always be a D". With this in mind what chance do my three separate Surrey based rental flats ever have of making a C?. None, so three more flats to go out of the market for good.
Imout Ofhere
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Sign Up17:34 PM, 16th October 2024, About a month ago
Two of my D raters have gone, another will be gone in a couple of years.
I have no intention of fitting solar panels or windmills to get to a C.
Yep, there is no other improvements to be made short of a rebuild !! Then again if the majority of house stock in this country is "D" why should the PRS be subject to this upgrade rule ?
Starmer and his Commie btchs need gone.
Cider Drinker
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Sign Up20:26 PM, 16th October 2024, About a month ago
Mine are rated C and they’ll be going too.
I won’t sell to landlords or to outsiders,
Disgrunteld Landlady
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Sign Up14:35 PM, 17th October 2024, About a month ago
Cheers to Shawbrook on the reduction of my 9.09% mortgage - yes you read that correct. My Fiance has Shawbrook at 5% odd.. gouging is the word here. I'm selling up, C&D's & E Sold. One to go and bye bye Shawbrook. As someone said shame if the Gougers go down with the Landlords and Landladies - we don't care. Not playing this Government's game any more. Can make a better return in the markets.
BobbyBisto
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Sign Up15:25 PM, 17th October 2024, About a month ago
Reply to the comment left by Suicide Jockey at 16/10/2024 - 10:07
There does seem to be a lot of clueless thinking going on in government I cannot realistically raise my EPC to a C The property is not cold or damp! The tenants who have happily lived there for 10 years will have to move out I will either sell and take the CG hit or move back in to reduce it Either way there will be one more property not available to rent No joined up thinking?