Landlords are you aware? This change could bring you benefits!
The Government are seeking views on proposals around raising energy performance standards for the domestic private rented sector in England and Wales.
This consultation closes in December 2020
What changes could be seen?
The government has committed to upgrade as many private rented sector homes as possible to Energy Performance Certificate (EPC) Band C by 2030, where practical, cost-effective and affordable.
These proposals will bring significant benefits to landlords, tenants and our environment including:
- Reducing energy bills and increased comfort for tenants and supporting delivery of statutory fuel poverty target of EPC C by 2030
- Potential property value improvements for landlords
- Delivering carbon emission savings over Carbon Budgets 4 and 5, making progress towards the net zero target
This is perhaps most significant in the private rented sector. Improving the energy performance of these homes is a vital part of a wider strategy to decarbonise buildings cost-effectively, considering the significant challenges posed by climate change.
The Benefits:
Investing in energy performance measures, such as insulation and low-carbon heating, delivers a wide range of benefits. As well as reducing emissions from homes, energy performance is an investment in health and wellbeing, as it means living in warmer, more comfortable homes, which brings with it associated benefits such as better air quality and improved comfort.
In privately rented homes, landlords who make energy performance improvements benefit from increased rental income and reduced void periods, whilst seeing increases to the value, quality and desirability of their assets. Evidence from a hedonic pricing study found properties currently at EPC C rating were worth around 5% more than those currently at EPC D rating.
Private landlords can identify measures for at-risk properties, including those with vulnerable residents.
These might include behaviour change. It is anticipated that in future, landlords will be able to benefit from reduced insurance premiums for properties with measures to reduce flood or overheating risk.
At Sandersons UK We have over 20 years’ experience managing rental properties for corporate and private landlords alike. The sector has attracted considerably more regulation over the years and as a result, has become more difficult for landlords to manage themselves. Over the last few years, we have found a growing number of landlords have elected for a fully managed service for peace of mind.
If you are a current landlord or someone interested in exploring the sector further, please contact us today for more advice and see how we can support you through the ever changing world in the lettings market. We will keep you informed very step of the way when and if the changes happen.