The Government is in current consultation to bring forward the change in EPC ratings from E to min ‘C’ from 2028 to 2025.
With climate change being a prominent factor in the news at the moment, the government is keen to do their bit.
From 2025 all new builds will be banned from putting in gas boilers to drive us away from gas as a carbon-based fuel. They are looking to replace these boilers with a heat source air pump.
The government introduced a ‘Green Homes Grant’ in September 2020, where they would pay two thirds of an invoice and the public paid one third with a cap of £5000. However, this was closed on 31st March 2021 due to various hitches and lack of skilled workforce. There is talk of them looking at another type of grant– let’s hope so!
Landlords will not be able to issue new tenancies unless their property is rated ‘C’, just like we did with the current system when they banned F and G ratings from the rental sector in April 2018.
The older the property, the more likely you are to be a D or E. I would highly recommend you looking at your current EPC and seeing if you have a potential rating of ‘C’ and what the recommendations are on how to achieve this.
If they insist on landlords upgrading properties to the pump system, this could have a negative impact on the rental sector as it just wouldn’t be affordable for many landlords and the return on investment could take several years to recoup! As they say, ‘watch this space’.
Have a good week!
If you would like a friendly, no obligation chat regarding buying, selling, renting or investing in property, then please email firstname.lastname@example.org or telephone 01202 711169.
You couldn’t miss headlines throughout 2021 of the increase in sales property prices. However, news on lettings and rental prices has not been as common.
The last three or four years have seen the rental market pretty static, but this has dramatically changed over the last 12-18 months. Tenants are staying longer in their properties, which in turn means there are less properties coming to market. This has created a shortage and pushed prices up.
Gardens have been very much sought after and this has seen an uplift of hundreds of pounds in monthly rentals, which is adding thousands to yearly totals for landlords.
So how does a landlord approach this with their existing tenant, especially if they have been long-term and good tenants? This is where a letting agent should shine and act as negotiator between the two parties. Most tenants expect a yearly increase in their rent, but when a significant increase, this can cause distress to the tenant.
We have successfully negotiated larger-than-normal rent increases with our tenants, giving our landlords that extra revenue.
It is important for landlords to keep up repairs and maintenance of their properties as this also has an impact on not just the amount of rent that can be achieved, but also the quality of the tenant.
Rental properties are a business for landlords and not a charity. You can still be a great landlord and go the extra mile but, at the end of the day, the money left in your hand impacts your living standards. Tenants will always look at the market to see if there are properties better and cheaper for them, this is where we need to make sure it is a win-win for both sides.
If you would like us to help negotiate a rent increase with your tenants then please phone for an informal chat.
Have a good month!
For more information or help with your rental property, email email@example.com or telephone 01202 711169 today.