Time to take the EPC message to all landlords
One of the challenges of being a financial services intermediary is keeping your services in front of existing clients while also appealing to potential customers. For those advisers who have landlord clients or are keen to increase the breadth of services they offer to include BTL landlords, new rules concerning energy efficiency in property being rented commercially have the potential to be extremely potent conversation starters and business generators.
From 2025, all rental properties with new tenancies must have an EPC rating of at least C and for existing tenants, landlords must comply by 2028. Our research has shown that portfolio landlords are more likely to be aware of the government’s proposed EPC requirements than small portfolio landlords.
The survey found that 80% of buy-to-let portfolio landlords with 10 or more properties and 70% of those with four to 10 properties are aware of the government’s EPC requirements. But only 54% of small portfolio landlords with one to three properties knew about the proposals.
There is a clear difference in understanding between those whom we would call professional landlords and amateur landlords with three or fewer properties
When asked about upgrading their property to reach the required minimum EPC rating of C, most landlords said they would wait until 2025 to carry out necessary work. A third of larger landlords (35%) with 10 or more properties were willing to upgrade sooner but only 20% of smaller portfolio landlords said the same.
It is perhaps not surprising that most professional landlords are aware of the EPC rating changes that are due to start in 2025. After all, BTL investment is their business with established portfolios and most are hands-on landlords.
However, awareness among smaller landlords is much lower and although they have another four years to make any upgrades to properties, they should really know what is coming down the line.
There is an opportunity for advisers here with the uptick in remortgaging already gathering pace. One of the benefits of Landbay’s green product range is that it provides landlords with the finance they need to remortgage and bring their properties up to the standards required. Apart from the incentive of lower rates of interest on our green mortgages, with your input, landlords can realise the added value of owning property which not only meets today’s energy standards but also anticipates future requirements.
Advisers have a major role to play in helping non portfolio landlords improve their understanding of the issues surrounding energy efficiency. But all landlords can benefit from seeing how green mortgages will not only help improve the quality of tomorrow’s rental housing stock but will also make a positive impact on their future profitability.
For more information or to discuss any of your BTL cases please get in touch using our BDM finder.
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