EPC Ratings Replaced by ‘Home Energy Model’ – Impact on Property Investors
2 years ago | 4 comments
Surge in tenant demand for EPC ‘C’ properties
12:05 AM, 14th June 2024, 2 years ago
16
There has been a surge in tenant requests for eco-friendly features in rental properties as 92% of investors report this rise, research reveals.
The survey by Handelsbanken found that more tenants have been asking about sustainable features like heat pumps and solar panels in the past year.
Plus, more than a quarter (28%) of renters specifically requested electric vehicle chargers (EV chargers).
Also, 58% of tenants asked for a property with a minimum Energy Performance Certificate (EPC) rating of C.
This trend is even stronger in London, where a staggering 88% of tenants prioritise a C rating – probably down to rising energy costs.
Surprisingly, 72% of the portfolio landlords questioned support stricter government EPC regulations and want to see legislation raising the minimum EPC rating to A, the highest achievable level, for both commercial and residential properties.
‘Long-term value of maximising energy efficiency’
The bank’s head of sustainability, Richard Winder, said: “Property investors are clearly recognising the long-term value of maximising energy efficiency across their portfolios, and are eager to meet the highest sustainability standards to capitalise on the commercial benefits.
“Locking in value, reducing operating costs, and attracting and retaining tenants are all front of mind for investors – research suggests that assets with the highest EPC ratings enjoy considerably longer lease lengths.”
The survey also reveals that landlords are increasingly recognising the value of sustainable properties with investors willing to go beyond current regulations
Rental properties to have an EPC rating of E
Current EPC rules in England require all residential and commercial rental properties to have an EPC rating of E or above before being let to tenants.
Previous plans to raise the minimum EPC rating to C for existing residential rentals by 2028 was scrapped in September of last year.
However, the report highlights that a significant portion of landlords (44%) are continuing with their initial sustainability investments.
A quarter of respondents say they have reduced how much they planned to invest after the EPC announcement was made.
The average annual budget allocated for sustainable upgrades has risen by more than 20% compared to 2023.
Tags:
Electric Vehicle Chargers in Rental Properties, Energy Efficiency in Rental Market, EPC rating, Government EPC Regulations, Handelsbanken, investment, landlord, sustainability, Sustainability Investments by Landlords, Sustainable Features in Rentals, Tenant Demand for EPC C Properties, tenants, UK property
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Member Since June 2014 - Comments: 1563
8:25 AM, 14th June 2024, About 2 years ago
Just had 72 desperate rental enquiries before pulling the ad.
Not one of them asked about the energy efficiency.
Member Since February 2016 - Comments: 1056
9:03 AM, 14th June 2024, About 2 years ago
Reply to the comment left by Monty Bodkin at 14/06/2024 – 08:25
Presumably because you displayed the EPC rating in your advertisement as required in law..
Member Since September 2018 - Comments: 3515 - Articles: 5
10:33 AM, 14th June 2024, About 2 years ago
Reply to the comment left by Old Mrs Landlord at 14/06/2024 – 09:03
hahaha! Half the tenants don’t even read the AST properly….
Member Since June 2014 - Comments: 1563
10:37 AM, 14th June 2024, About 2 years ago
Reply to the comment left by Old Mrs Landlord at 14/06/2024 – 09:03
“The survey by Handelsbanken found that more tenants have been asking about sustainable features like heat pumps and solar panels in the past year.”
Not a single one.
Member Since June 2019 - Comments: 778
11:00 AM, 14th June 2024, About 2 years ago
There is a shortage so a ‘surge in demand ‘ for any property available for rent. I have also never been asked about the EPC and from general conversation I hear heat pumps can be a nightmare to maintain (lack of parts and trained engineers).
Guess who will get blamed when they don’t work for a few weeks (hint -not the suppliers, or green activist’s, you may even get a fine for the situation!)
Member Since January 2020 - Comments: 559
11:23 AM, 14th June 2024, About 2 years ago
I don’t think we’ve ever had a tenant ask about EPCs.
A mate of mine rents and I mentioned recently that his house hadn’t got an EPC (and would probably fail). He wasn’t at all bothered – it’s a house he likes!
Member Since September 2018 - Comments: 3515 - Articles: 5
11:27 AM, 14th June 2024, About 2 years ago
Reply to the comment left by Graham Bowcock at 14/06/2024 – 11:23
so its being let illegally if lower than the min standard to be able to let?
Member Since January 2020 - Comments: 559
12:31 PM, 14th June 2024, About 2 years ago
Reply to the comment left by Reluctant Landlord at 14/06/2024 – 11:27
That’s right, but my pal isn’t bothered.
For the record, the landlord is a major national institution.
Member Since March 2023 - Comments: 1506
12:33 PM, 14th June 2024, About 2 years ago
Who did they interview for this, not one of my tenants have ever asked about EPC rating and I doubt most would care.
Member Since September 2018 - Comments: 3515 - Articles: 5
1:01 PM, 14th June 2024, About 2 years ago
Reply to the comment left by GlanACC at 14/06/2024 – 12:33
ask them what the initials EPC actually mean…..
*blank stares*