Financial Conduct Authority No. 952718

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Buy-To-Let: EPC Upgrade Opportunities For Landlords In 2022

21 Apr

Mortgage News

With the government pushing for greater energy efficiency in rental properties, the proposal of new regulations in the coming years will see landlords forced to make upgrades and improvements to their existing properties, or be forced to leave their properties without tenants at all.

For those looking for properties to add to their existing buy-to-let portfolios, a recent survey from Landbay showed that 53% of landlords with larger property portfolios would consider buying a lower EPC-rated property (to take up the opportunity of buying lower-rated properties at a cheaper price and bringing them up to the required ratings).

If you’re a landlord looking for advice on green, eco friendly mortgage products available on the market or need guidance on how to best prepare for the new regulations, get in touch with one of our Mortgage Brokers in Northamptonshire today.

What Opportunities Are Available For Landlords? 

By 2025, the government is proposing that any new tenancies must be at an energy performance certificate (EPC) of C-rating and above, meaning that landlords with lower EPC ratings will need to consider their finance options now to get their properties up to scratch. By 2028, this will apply to all existing tenancy agreements. 

Check out our guide of key things to consider if you’re a landlord with a low EPC rating, or if you’re considering buying a lower-rated property to let: 

  • What Are The Costs Of Making a Property Energy Efficient? 
  • Benefits Of Buying A Lower Rated EPC Property 
  • Green Mortgages 

What Are The Costs Of Making A Property Energy Efficient? 

Although three years may seem like a long way off, it is estimated that the average cost of raising a property from a D-rating to a C-rating is approximately £6,000, according to Mortgages For Businesses Sales Director, Jeni Browne. Many landlords may therefore face overpaying for work if they are not prepared for the changes to come into force.

If you’re a landlord and need advice on how best to fund the improvements to an existing property, our team of mortgage experts in Kettering can help

Benefits Of Buying A Lower Rated EPC Property 

If you’re considering buying a lower-rated EPC property to make improvements, the initial investment to get the property up to the required standard will have a range of long-term financial benefits.

Buying a lower-rated EPC property and making improvements to enhance the property’s energy efficiency will not only lower energy bills for your tenants, making the property more appealing to potential renters, but it will also increase the value of the property. This can in turn justify an overall increase in the rent charged to tenants too. 

Green / Eco Friendly Mortgages 

Green mortgages provide landlords with lower interest rates and the opportunity to improve existing properties’ energy ratings. As Mortgage Advisors in Northamptonshire, we provide advice on the green mortgage products available to you on the market and how to be more selective when investing in energy-efficient housing. 

How Can I Benefit From A Lower EPC Rating? 

At CG The Mortgage Experts, we believe it’s important for landlords to be educated about the upcoming government regulations and to take advantage of the lower rates offered by green mortgages so they can best prepare themselves financially for the years ahead. To find out what your current EPC rating is, check out the EPC Rating for more information.

If you have a question about whether a Buy-To-Let Mortgage is the right option for you or want to know what is available for you on the market, get in touch with one of our mortgage experts in Kettering today.

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