If you're already a landlord, you'll be be aware that from 1st April all new rental leases and renewals of tenancies will be required to have an energy performance rating of at least E on an Energy Performance Certificate (EPC). And for existing tenancies, the regulations come into force on 1st April 2020.
This got us thinking how much tenants are prepared to pay for energy efficiency. We found that properties across England and Wales let in 2017 with an energy performance rating of E, achieved 3.1% more per square foot than properties let with an F or G rating. An 800 square foot property, say a 2 bed town house for example, equates to an average of £360 per year.
The majority of landlords are well prepared, but we calculate that around 7% of properties let back in 2017 still need to be brought up to the standard required. Best prepared are London landlords where just 4.9% of properties let last year were lower than an E rating, while in the South West more than 10% of properties did not meet the standard.
At the top of the scale, properties with an A or B rating achieved, on average, 31% more per square foot than F and G rated properties in 2017. On an 800 square foot property, this equates to an average premium of £3,600 per year.
Our lettings division here in Loughborough are consistently monitoring the rental and investment market and are on hand to offer advice whether an exsiting landlord or first time investor. CALL US ON - 01509 672328