Is your property portfolio Energy Performance compliant?
It can feel like every time you turnaround the government is
introducing a new bill that will impact the profitability of the rental market.
The government is constantly balancing policy with customer safety, and it
feels like private landlords often end up with the sticky end of the stick.
Keeping up with new regulations is a constant source of irritation and, more
often than not, cost. This latest proposal has come out of the Department of
Business, Energy and Industrial Strategy in a consultation document released as
part of a government initiatives to de-carbonise buildings in order to mitigate
the effects of climate change. The proposal sets out that it wants EPCs on
private rental properties to be Band C (or above) by 2025 for new tenancies,
and by 2028 for all tenancies.
Ok, it’s a few years off but the financial impact of making
this happen could be huge if you have an older property with ageing appliances
and heating systems.
Legislation placing requirements on letting agents is
already in place. This includes provisions contained in the Energy Performance
of Buildings (England and Wales) Regulations 2012 (hereafter ‘EPB Regulations’)
and in the Consumer Protection from Unfair Trading Regulations 2008. The
difference now is there is a hard deadline for change.
It’s time to consider a renovation strategy for your
property that will help you spread the cost and maximise rental income. Being
ahead of the game can reap rewards in the amount of income you can generate
from your property. A well-presented, compliant property will deliver higher
rental values and better-quality tenants.
Even if you only have one property it’s important to think
strategically about maintenance and compliance. If you need help, we’re here to
help you – so strings attached.
Now is the time to expand your property portfolio – which
regions are booming?
A recent rental demand league table, produced by a lettings
management platform Howsy, clearly shows the winners and losers across the UK,
with some unexpected results for London.
The study covered rental listings across major property
portals, taking an average demand score for major cities based on where has the
highest number of properties already let as a percentage of all rental
listings. The research highlights where the highest level of tenant demand is
based on this supply/demand ratio.
Big Winners
Belfast came out on top with the largest increase in tenant
demand in the third quarter of 2020, up 31 per cent since quarter two, followed
by Glasgow, Bournemouth and Bristol - all up by over 20 per cent.
Surprising news for London
Overall demand in London increased by only 10% (sharply
lower than other areas) since Q2, however, a number of the capital’s peripheral
boroughs have seen a still-stronger uplift - Kingston by 18 per cent, and
Richmond, Havering, Islington, Hillingdon and Barking and Dagenham all up 13 to
15 per cent.
Clearly the rental market is up, but growth is not following
the traditional pattern. Has the move to remote working throughout lockdown directly
impacted London? Very likely, but London is still one of the most robust
markets in the country.
These figures illustrate that there are opportunities to
expand your rental portfolio in regions where purchase price is much lower, and
with the current freeze on stamp duty, the rate of return on rental properties
is likely to see a good lift.
Good news for landlords generally who have had little
comfort during the pandemic. If you’re thinking of investing and worry about
buying a property that is far from your home base, we can help. PPM can take
care of your property no matter where it is in the UK.
