How a high EPC rating could make your landlord’s property more attractive

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How a high EPC rating could make your landlord's property more attractive

Guest blog by Goodlord, a property lettings software that improves the renting process for agents, landlords and tenants alike.


 

With energy prices rising and a proposed increase to the Minimum Energy Efficiency Standards on the horizon, now could be the time for your agency’s landlords to upgrade the energy efficiency of their properties – to take advantage of tenant demand for an energy efficient home while meeting future compliance obligations.

The pandemic has shown that in the midst of a crisis, there are opportunities out there for businesses flexible and agile enough to spot them and act quickly. The energy crisis is no different. Estate and letting agents can help support their tenants and landlords and ensure that properties stand out by leaning on the growing necessity to offer a green and energy efficient home.

Minimum energy standards obligations

Most private rented properties are already required to have a Minimum Energy Performance Certificate (EPC) rating “E” in England and Wales as of April 2020. The government has since proposed raising the minimum standards to EPC Band C by 2028 for all private rented properties, to improve the overall energy performance of the English and Welsh private rented sector.

These regulations are in line with the government’s goal to reach net zero by 2050. The energy in housing accounts for 14% of total UK emissions, according to the Committee on Climate Change, and privately rented properties are among the least energy efficient, “costing over £6bn in energy bills in 2018 and producing GHG emissions of around 11 megatonnes of carbon dioxide equivalent a year”. The private rental sector is therefore under pressure to play its part in reaching the government’s lofty targets.

Opportunity in rising energy prices

While these obligations are stringent and do require an investment from landlords – currently capped at £3,500 per property – there is also an opportunity for those who look ahead to ensure a long-term return on their property investment.

Rental property demand from tenants, although currently strong, will always ebb and flow. Making energy efficiency investments to ensure a higher EPC rating of a property could help safeguard the attractiveness of your landlord’s property during the ebbs, and spread the cost of any upgrades required to stay compliant. Tenants are already showing an appetite for energy efficient properties, and with energy prices increasing due to wholesale gas price rises, this sentiment will likely only grow. Recent research shows that 63% of renters think about saving energy in their home.

In line with these energy expectations, smart technology is also increasing in popularity. Being able to market a high EPC rating and smart tech installations which can help tenants monitor energy consumption in their rental property is an easy way to demonstrate real value, balancing legal requirements with tenant appetites. In the build-to-rent sector, tenants shared that they’d be willing to pay 20% more in rent on average for a property with smart technology. That’s a strong incentive for landlords and agents to consider investing earlier rather than later.


Guest blog by Goodlord, a property lettings software that improves the renting process for agents, landlords and tenants alike.

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