It is likely that 2022 will see a number of key announcements which will impact landlords, and the letting industry.
One announcement which is expected relates to the change in expected Energy Performance Certificate (EPC) standards for rental property.
It is believed that by 2025, all new tenancies in the private rental sector will require to hold an EPC rating of C or better. However, some media outlets, led by the Daily Telegraph, believe this might be delayed until 2026.
The plans for all rental properties to hold a C rating or better by 2028 are still in place.
It could be costly for many landlords to upgrade their rental property
There is evidence to suggest close to 60% of all private rented property in England has an energy rating below a C. Around one third of private rented homes in England were built before 1919, and these are recognised as being difficult homes to bring up to standard.
Therefore, landlords might face an expensive bill in bringing their rental property up to standards, with some estimates suggesting it could cost landlords up to £10,000 per property.
With National Residential Landlords Association (NRLA) studies indicating private landlords enjoy a net income of less than £4,500 a year from each rental property, there will be some tough decisions to make. This is why bodies like the NRLA are calling on the Government to offer more support for landlords.
What are leading industry bodies saying?
As you would expect, there is a lot of focus on energy-efficiency from the leading bodies in the UK rental market.
Ben Beadle, NRLA chief executive, says: “We all want to see as many energy efficient rental properties in the sector as possible. Besides being good for tenants, improvements made to rental properties ensure they become more attractive to prospective tenants when being marketed by landlords and agents. However, the government’s proposals for the sector are not good enough. They rely on a misguided assumption that landlords have unlimited sums of money and fail to accept the realities of different property and rental values across the country. Ministers need a smarter approach with a proper financial package if they are to ensure their ambitious objectives are to be met.”
Propertymark chief executive Nathan Emerson has spoken about the key issues he expects to impact the lettings market in 2022, with energy-efficiency being a critical factor.
Nathan said; “What we need to see from all UK governments is clarity and support for both homeowners and landlords. At Propertymark we are wary of the one-sized fits all approach currently being taken and the lack of funding support for landlords and homeowners to improve their properties. Policy makers must take into account the disparity of age, size, location and construction of the UK’s housing stock when deciding how best to tackle this huge challenge. Since the failure of the green homes grant, the approach has felt decidedly more stick than carrot; penalisation via green mortgage targets and restricting landlords who can’t achieve an EPC rating C band risks stalling the market and depleting the PRS.”
Contact Frank Schippers for any Crowthorne letting market assistance you need
If you have any rental market questions or queries, please feel free to contact us. If you plan on letting property, we recommend arranging a property valuation to ensure you make an informed decision. At Frank Schippers, we are here to support you in this trying time, and you can call us on 01344 777 888.