If you are a landlord, you know how many regulations and guidelines you need to live up to. To remain profitable, changes need to be made. Changes are happening all around you, so you need to stay on your toes to keep up with them. What changes are coming?
In an attempt to tackle the tragic issue of Climate Change, the governments manifesto pledge includes the improvement of the energy efficiency of housing in the UK. This is specifically being addressed by means of guidelines surrounding EPC ratings, or Energy Performance Certificates. By the year 2025, properties will not be allowed to be let to new tenants unless they have an energy efficiency rating of C or above.
To get to that standard, there’s quite a lot of work to be done. 25 per cent of landlords are not even aware of the current EPC rating of their property while 15 per cent confessed that they didn’t know about the upcoming changes to the standards. This lack of education means there is a lot to be done in terms of making people aware of what changes are coming. On top of this, the financial aspect of making these changes needs to be considered too. A fifth of landlords recently surveyed didn’t know how much the work involved in improving the efficiency of their property would cost. Furthermore, even if you do know how much it will cost, how can you afford it in this current economic climate?
So, what can be done to close this worrying gap in knowledge?
The Information and Resources Available
Landlords may feel in the dark when it comes to navigating the waters of change, but that really isn’t the case at all. There is a wealth of information out there to shed light on the situation. First, you can start by checking the EPC register. Here you will be able to find out not only what your current rating is but also what the potential for your property could be and what changes would need to be made to achieve that. Additionally, as you look around the gov website, you’ll find lots more information about the upcoming changes but also the funding options and initiatives in place to help make it more affordable. For example, the Chancellor’s Spring Budget recently announced that energy saving materials would be sold excluding VAT, making the efficient option the economical option.
There are also other financial resources out there too. Companies like Propp specialise in helping clients find financing options to complete necessary work on their property. You could also investigate the options such as refurbishment bridges or second charge loans that will help you cover the costs without pinning you down to a lengthy finance agreement.
Make Changes Now
With just three years until the changes to regulations are in place, there’s not a great deal of time left to assess your personal situation and start making plans to bring into effect the adjustments necessary for your property. As the deadline draws nearer and expenses creep higher, there’s going to be a lot of other competition when it comes to applying and sourcing funding for the changes required. Now is the time to start your research and start taking action to improve the efficiency of your property. If you don’t, you’ll be left with a property you can’t rent and that others will be reluctant to buy. It may take some time, energy, and investment but once you make these changes, you may find that your pocket will thank you for it. The planet is sure to!
