Landlords Running Rather Than Window Spending

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New data has revealed that thousands of buy-to-let landlords have begun selling their properties ahead of the government changes to Energy Performance Certificate (EPC) regulations.

This comes as Cornerstone Tax has found that just 1-in-5 landlords now say their investment has been a profitable one, with a further 1-in-5 admitting that they have lost thousands.

As a result, 65,000 rental properties went up for sale in the first three months of 2023, 36,460 of those holding an EPC rating of D or less.

David Hannah of Cornerstone Tax says: “By 2028, landlords are likely to be obliged to ensure that their properties hold a minimum EPC standard rating of 'C' or higher, or face fines of up to £30,000.

“It is reported that to get their property's EPC rating from 'E' to 'C' will be costly with many landlords expected to make changes such as installing insulation, heat pumps or double glazing.

“But many properties will not be considered viable for such upgrades.”

Grants

Hannah continues: “Under the changes to the EPC ratings for buy-to-let properties, only 0.2% of UK landlords would qualify for government funding. As a result, landlords are now under significant pressure to upgrade their properties by 2025 and by 2028 all existing tenancies will likely require the property to have a rating of ‘C’ or above.

“For most landlords, getting their EPC standards from ‘E’ to ‘C’ will come at a considerable cost. To get your rental property up to scratch, some improvements you could make include energy-efficient lighting, improved wall and roof insulation, a more efficient heating system, a minimum of double-glazing windows or if you have them already, triple-glazing, alongside less wasteful domestic appliances and even solar panels.

What to do

“I advise landlords to work out how much it will cost them to make these changes and offset the time it will take for their investment to pay off.”

Picture:  Thousands of buy-to-let landlords have begun selling their properties ahead of the government changes to Energy Performance Certificate (EPC) regulations.

Article written by Cathryn Ellis
19th June 2023

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