Landlords: How to make your property more energy-efficient
Landlords could be banned from renting out properties that don’t meet energy efficiency rules after 2030. While the deadline might seem a long way off, it could mean some landlords need to carry out substantial work. So, reviewing your options now may be useful.
The previous Conservative government proposed rules that would set a minimum Energy Performance Certificate (EPC) rating for properties that were let out. Ed Miliband, secretary of state for energy security and net zero, has indicated that the Labour government will take these plans forward.
It’s thought that landlords will need to upgrade properties that have an EPC rating below C.
The plans are likely to have a significant effect on landlords as the Office for National Statistics (ONS) estimates that around 58% of homes in England and 62% in Wales are rated below C – the equivalent of more than 8.4 million properties.
So, where should you start when assessing how to make your property more energy-efficient?
Reviewing your property’s Energy Performance Certificate
All properties in England and Wales must have an EPC, and it’s a good place to start when assessing how to boost the EPC rating of your property. If you’ve completed work on your property recently, you might want to have a new assessment carried out.
Several sections could be useful when you’re reviewing how to upgrade your property.
Your current and potential EPC rating
The EPC not only lists the property’s current rating but also its potential. So, you could see if your property can achieve a C rating and how wide the gap is between the two.
The top actions
Next, look at the top actions of your EPC. This will list the steps you can take to make your property more energy efficient, it might include large projects, such as adding external wall insulation, or relatively simple ones, like switching to lower energy lighting.
As well as listing the steps, the EPC will also provide a cost outline. Of course, this cannot be guaranteed, but it can be useful when you’re calculating a budget and want to understand which projects could fit into your plan.
You can also check out the recommendations section for areas that need further improvement. Helpfully, this shows how the recommended measures would affect your EPC rating. So, if you’re deciding which measures to pursue and want to understand which would deliver the biggest impact, this section is useful.
The energy performance of your home
Finally, look at the energy performance of your home section – this provides a breakdown of how different elements of your property are performing. It gives a rating out of five for energy performance so it’s simple to compare the different areas.
For example, you might notice that while your windows and doors are efficient, a lack of insulation in the loft is pulling down your overall EPC rating.
Use your EPC to guide your energy efficiency decisions
Using the information on your EPC, you’re in a good position to target areas that could help boost your EPC rating to a C or above and comply with regulations that Labour proposes to introduce.
The indicative cost is also valuable when you’re reviewing quotes you receive for carrying out work. However, keep in mind that the cost of work can vary significantly across the country and is a guideline only.
Landlords could benefit from making their properties greener
While updating homes to comply with new regulations could be difficult and costly, there are benefits for landlords.
Energy-efficient homes will reduce utility bills for tenants, who may be willing to pay a higher rate of rent as a result. So, while you need to consider the initial cost of updating your property, it could deliver higher returns overall.
In addition, if you own a property with an EPC rating of A or B, you might be eligible for a green mortgage. In some cases, a green mortgage could mean you’re able to access a lower rate of interest, so your mortgage repayments may fall.
Contact us to talk about your buy-to-let mortgage
If you have a buy-to-let mortgage and would like to discuss the different options or want the support of a mortgage adviser when searching for a deal, please get in touch.
Please note:
This blog is for general information only and does not constitute advice. The information is aimed at retail clients only.
Your home may be repossessed if you do not keep up repayments on a mortgage or other loans secured on it.