Landlords shunning older properties as minimum EPC band law looms
Over half of investors are looking for upgraded older properties or newbuilds as huge cost of EPC upgrades hits the market.
New research from Hamptons reveals that property investors and landlords are beginning to shy away from buying older properties that may cost thousands to upgrade to the proposed minimum Band C level of EPC.
The estate agency’s research points to a significant switch to newer properties that are already under a Band C or older ones that have already been upgraded.
“Given it will prove impossible for all homes to secure an EPC rating of at least a C without significant cost, it’s likely to mean older homes will become considerably less attractive to landlords,” says Aneisha Beveridge, Head of Research at Hamptons.
This trend is the inevitable consequence of the government’s proposals that would see properties under a Band C being excluded from the private rented sector, most likely by 2025 or 2028 – although this has So far this year, the share of homes bought by investors with an EPC rating of A-C is running at 50%, the highest figure on record, and up from 39% in 2021 and 33% in 2020.
Fruit
“By removing the least energy-efficient rental homes from the market, government policy has already picked the lowest hanging fruit,” says Beveridge
“But extending this plan to upgrade homes with a D or E rating up to C will impact a far larger number of households, while generating smaller savings for tenants.
“The policy will mean that the average tenant will eventually pay lower energy bills than the average homeowner, although it’s likely to remove some rental homes from the market, putting further pressure on stock levels.”
Read more about the costs of EPCs.
The average tenant will be paying much more rent. And the Benefit tenant won’t be able to afford the rent. Let the Govt make us give ’em New Builds if they like. We all know New Builds cost much more to rent.