With post-COVID regulations continuing to threaten the PRS landscape; one of the latest causes for concern are the changes being made to Energy Efficiency Standards. All residential buy to let properties currently require an Energy Performance Certificate (EPC) of ‘E’. This applies to all assured tenancy, regulated tenancy and domestic agricultural tenancy agreements. All buy-to-let properties starting a new tenancy as of 2025 however will require an EPC rating of ‘C’.
Energy Efficiency Standards 2021: Landlord concerns…
As things stand now; you cannot legally (in most cases) rent out a property with an EPC rating of ‘F’ or ‘G’. Current regulations state that landlords are not required to spend more than £3,500 on efficiency improvements to bring properties up to an EPC rating of ‘E’. But if you are the owner of multiple properties and have not yet ensured that you are fully compliant; you could be looking at a huge bill. Failure to act on this could mean facing fines of up to £5000 per property.
On top of this; over a third of landlords have expressed doubts over their ability to reach the government’s looming minimum ‘C’ rating within the required timeframe (with the inability to finance the new proposals a primary concern). One portfolio landlord, for example, issued the following statement to This is Money:
“Of all the punitive recent legislation and anti-landlord changes, nothing comes close to the impending minimum C rating. It is this alone that will cause me to sell my buy-to-let properties, and I suspect, a large number of others. My properties are old and as such will take a ridiculous amount of money to bring up to a C, even if that were possible, which I suspect it will not be. It is by far the biggest threat to the buy-to-let market and it is within plain sight.”
Worried about meeting official standards?
You might want to consider The Advanced Rent Option. Generally speaking, we only take on fully-compliant properties. However, if you need a lending hand initially to get your rental property meeting the official government standards, we offer a ‘landlord rescue service’ at our discretion. Once your property is compliant; you will be able to enjoy the benefit of receiving your rent, in one lump sum, a year in advance. If your properties are currently compliant, but you need cashflow injections to prepare for the upcoming changes (or to increase your portfolio), then ARO also is also for you. Lastly, if you are a portfolio landlord with both compliant and non-compliant properties: the cash injection can of course be used for the upgrades you need.
ARO™ is a quality full management service, (the brainchild of Simon Shinerock, Chairman of Choices) that includes a year’s rent upfront at no extra cost (outside of the standard fees). ARO™ is available for new and existing tenancies, providing the tenants pass a professional referencing check. Calculate how much you could get here.
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Here to help you make the right choices
Choices proudly ranks in the Simply Business Property100: the top influencers in the UK property world and is founded by Simon Shinerock; one of the most enigmatic figures in the property industry. Read his Chairman’s statement here, and don’t hesitate to get in touch if you have any questions about our first-class service. Feel free to get in touch here.