Good EPC ratings are increasingly important for tenants when considering which properties to rent, it’s been claimed.
Nicky Stevenson, managing director of the Fine & Country lettings agency brand, says: “As uncertainty surrounding energy costs lingers, renters are increasingly prioritising energy efficiency. Statistics from Dataloft and the Property Academy reveal that 78 per cent of renters considered the Energy Performance Certificate important when searching for a property.
“With government regulations that any newly-rented properties must have an EPC rating of C or above by 2025, landlords will need to take steps to improve their score.
“According to Dataloft, in the last year just 53 per cent of properties in the private rented sector had an EPC rating of C or above; however, a much more promising 94 per cent had the potential to achieve this rating.”
Stevenson says that more generally, the already-strong lettings market is set to heat up further as spring develops.
“Rental prices remain high, supported by demand outstripping the market’s persistent low stock levels. Some in the industry have projected a six per cent increase in rents by the end of this year, increasing by around 20 per cent by 2027.
“The market is also seeing a resurgence in metropolitan areas, as the hangover of Covid eases and city living returns, increasing demand for value-for-money homes. According to Dataloft, 53 per cent of properties let in the first two months of the year were flats, similar to pre-pandemic levels.”
Looking specifically at the prime rental sector, Stevenson says that the average rent for a prime market property is up 13.6 per cent year-on-year. “Only in the North East and South East are prices lower. This may be attributed to renters seeking smaller, more affordable accommodation as a response to the rising cost of living” she notes.
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More wise words about making domestic rental units better, reducing energy waste and improving the 21 million EPCs built-up over the last 14 years on the public national database. I've actually met Nicky Stevenson and she is one of the most intelligent, forward-thinking property professionals in our industry. There are, sadly, a tiny minority of domestic landlords who don't 'get it' but the asset value of their units is diminishing all the time. The Big 7 mortgage lenders in the UK are steadily making is more difficult to get a new mortgage or re-mortgage on houses and flats with awful EPC Grades. Makes sense - would you want to co-invest your capital in poor quality, poor performing assets that tenants don't want?
I hope everyone reading Landlord/LettingAgent Today has got their own family home energy efficient and Lodged an EPC of Grade C or better on the national database. I have and so have other landlords that I do business with. I'm not thinking of selling or re-mortgaging my family home but as EPCs last for 10 years it's crackers not to get ahead of the inevitable problem if I fail to take action.
Gosh Martin you're a real star. Or is their a vested interest here ?
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