Property MOT would save buyers and sellers cash NOW
As a new generation of buyers join the market Landmark’s Mike Holden says this is an ideal moment for lenders to evolve and innovate.
A housing MOT – just like the annual service a car has – could save both sellers and buyers cash and could even be sold by estate and letting agents.
Writing in Landmark Information Group’s latest climate change report, The New Frontier of Real Estate Diligence, its divisional director of growth, Mike Holden, says that he believes we have entered a perfect storm, with soaring energy prices and increased climate change awareness likely to instigate change.
He told The Neg: “For vendors, energy efficient upgrades are going to be important if they are to make older houses more desirable. One of the solutions on the table currently is the notion of a property MOT.
LAW
“If every house, by law, needed some form of regular assessment every five or 10 years regardless of whether or not it is being sold or let, lenders would have a clearer understanding of all properties on their books, which would help them understand and mitigate their overall lending risk.”
Holden says that a regular review would assess property compatibility and the cost of any new improvements meaning lenders could target some specialist products which could be used to fund energy efficiency improvements.
Similarly, if a homeowner becomes aware, through their latest assessment, of how they can improve energy performance to save on bills, everyone wins: owner, lender and planet.
A regular housing MOT would be beneficial for letting agents to get involved with.”
Holden adds: “EPC’s are really the only consistent measure that we have – although there are obviously many more sophisticated reports that can be done. But one of the main issues is the economics of it all.
REGULAR
“A regular housing MOT would be beneficial for letting agents to get involved with. For estate agents offering a regular MOT could be good for winning a resale instruction.
“As to whether people are prepared to pay for this, it depends a lot on individual circumstances – people look at and take lifestyle decisions. It’s the difference between buying an electric car or a petrol one.”
You can read the full report HERE.
