Student property EPC downgraded moving C rating further away?
3 years ago | 17 comments
Landlords spending thousands of pounds more than expected on EPC improvements
3:20 PM, 16th February 2023, 3 years ago
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Landlords have spent nearly £9,000 on improvements to meet proposed EPC requirements, according to new research.
The findings from Shawbrook Bank reveal that landlords have spent an average of £8,900 so far on improvements – which is almost 50% more than they had expected they would need to spend.
Researchers found 21% of tenants have spoken to their landlord about making energy efficient improvements to their property. Whilst 26% of landlords have already made energy efficiency improvements to reduce energy bills for tenants, and to meet proposed EPC requirements.
‘Efficiency standards will become tougher in the future’
Emma Cox, managing director of real estate at Shawbrook, said: “It’s likely that efficiency standards will become tougher in the future, which is just one of the reasons that landlords should take note of tenant’s requests and start making a plan.”
The findings said when it comes to the energy efficiency changes tenants would like to see made to a property, 26% of tenants stated they would like to see solar panels installed. A further 22% said they would like a new boiler and 20% said double glazing would be their preference.
A fifth of tenants (17%) said they would even consider living in a smaller property if it meant it was more energy efficient.
Tenants favouring more energy efficient properties
Under current government regulation rules landlords are not expected to spend more than £3,500 on upgrades to meet the current EPC requirements for a rating of E.
However, proposed changes could see all rental properties requiring an EPC rating of C by 2028, and a potential increase to this cap to £10,000, meaning landlords could be required to spend more to meet minimum requirements.
Ms Cox added: “As trends now point towards tenants favouring more energy efficient properties, these changes should not just be seen as a tick-box requirement by landlords, but also a worthwhile investment.
“If tenants feel their accommodation is more cost efficient and sustainable, they will be more likely to stay, which in turn will benefit landlords.”
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Member Since November 2016 - Comments: 37
4:00 PM, 16th February 2023, About 3 years ago
Or many landlords may just say “No, enough is enough I’m selling up now. Apply to the Council for housing”. Sorry you didn’t get your new boiler & solar panels FFS!
Member Since February 2023 - Comments: 3
5:57 PM, 16th February 2023, About 3 years ago
While another expense is far from welcome isn’t this a plus for landlords who rent quality properties and root out the slumlords and rogue landlords renting out substandard properties?
Member Since May 2015 - Comments: 2188 - Articles: 2
12:16 PM, 17th February 2023, About 3 years ago
Reply to the comment left by TBLMKR at 16/02/2023 – 17:57
Quality properties and energy efficiency do not necessarily go together. Many existing properties will never reach a C but may be very well appointed.
Member Since March 2022 - Comments: 363
12:25 PM, 17th February 2023, About 3 years ago
Reply to the comment left by TBLMKR at 16/02/2023 – 17:57
Just because a property has an EPC rating below C does not make it a slum. In fact most UK properties are rated below C
Member Since August 2016 - Comments: 1190
1:35 PM, 17th February 2023, About 3 years ago
Reply to the comment left by northern landlord at 17/02/2023 – 12:25Exactly …… lovely three hundred years old stone walled cottage, superb condition, lots of character, overlooking the sea in Cornwall comes to mid. Nice scenario. But not for the tenant when the property is deemed unsuitable for renting out as it’s a only a D rating. And the poor tenant has to pack his bags and leave for a council flat with an E rating which is absolutely fine for renting out. The lunatics have taken over the asylum.
Member Since May 2018 - Comments: 24
5:01 PM, 17th February 2023, About 3 years ago
Reply to the comment left by TBLMKR at 16/02/2023 – 17:57Many or most rented properties are good quality, as are the landlords. However, whilst rooting out ‘the slumlords and rogue landlords renting out substandard properties’ is usually the stated objective of local and national government initiatives, the enforcement tools against them already exist, but are not used by those who have the power to and the slumlords continue to operate quite successfully – it tends to be only the good landlords that comply with the rules.
There comes a point where enough is enough. The proposed EPC requirements – targeted only at the PRS – could entail huge expenditure alongside current uncertainty over achieving the desired EPC C, and the savings to energy bills are limited. With threatened rent freezes and an inability to get a return on expenditure (not forgetting all the other cr*p landlords are facing), it is little wonder that PRS landlords are despondent, and are selling up.
Tenants have a choice whether to rent a property lower than EPC C. No-one forces them to live in substandard accommodation.
Member Since August 2022 - Comments: 12
1:11 PM, 18th February 2023, About 3 years ago
Hello all. Please remember- the Minimum energy standard was created to make properties more energy efficient. That’s it. So if your rental property is not energy efficient- the EPC will show that and show the things that can be done to make it better- or get advice from an energy saving advisor/ specialist. Job done.
You have to remember all other parts of living are having to adjust as well. No more pertol or diesel vehicles- everyone has to have an electric car. So please us the opportunity to make your property more efficient- for you and your tenants. It will actually add value to the property- especially when you decide to off lot and sell.
Member Since June 2013 - Comments: 3237 - Articles: 81
4:06 PM, 18th February 2023, About 3 years ago
Has anyone asked the tenants what they want? We know they want the better house, but when u give them choice I can give u New build for £1000pm or EPC C for £900pm, or still decent house EPC D but not New build standards for £700pm or £550pm I know what virtually all my tenants say.
Member Since May 2015 - Comments: 2188 - Articles: 2
7:27 AM, 19th February 2023, About 3 years ago
Reply to the comment left by Mick Roberts at 18/02/2023 – 16:06
Nick it never was about what the tenants want, rather what billionaire politicians think they ought to have.