BTL and EPC rating

cidfenmaria

Just want to get some opinion/experience if possible. Is a property with a EPC energy rating E investible for BTL? how costly/time-consuming to upgrade to C in general?
I read that from 2025 all property under C cannot be let.

thanks

p00hsticks

I'm not sure that's entirely true, just as today it's not true that you can't let properties with an EPC higher than E.

Currently, if it's not feasible to improve a rental property to the required E rating (e.g. because the work required would cost more than £3,500) landlords can apply for an exemption to the legislation. To do this they need to state that they have applied all feasible  steps to improve the rating up to the £3,500 cap. Once they have that exemption they are allowed to lawfully let the property out.

The exemption lasts for five years, after which they are required to have another attempt to reduce the EPC rating.

More details here

https://www.gov.uk/guidance/domestic-private-rented-property-minimum-energy-efficiency-standard-landlord-guidance

I imagine there will be similar rules in place when the target is reduced from E to C - if not I suspect there are gonig to be a lot of old terraced houses from the 1900's left empty and an even more severe shortgage of available rental proerties. 

canaldumidi

I would avoid. It could cost £1000s or even be impossible, though there may be let-outs as at present with 'F's.

https://thelandlordassociation.co.uk/new-2025-epc-regulations-for-all-rented-property

But as yet it's only a proposal.

https://www.landlordzone.co.uk/news/compulsory-epc-band-c-by-2025-causing-confusion/

Gycraig

p00hsticks said:

I'm not sure that's entirely true, just as today it's not true that you can't let properties with an EPC higher than E.

Currently, if it's not feasible to improve a rental property to the required E rating (e.g. because the work required would cost more than £3,500) landlords can apply for an exemption to the legislation. To do this they need to state that they have applied all feasible  steps to improve the rating up to the £3,500 cap. Once they have that exemption they are allowed to lawfully let the property out.

The exemption lasts for five years, after which they are required to have another attempt to reduce the EPC rating.

More details here

https://www.gov.uk/guidance/domestic-private-rented-property-minimum-energy-efficiency-standard-landlord-guidance

I imagine there will be similar rules in place when the target is reduced from E to C - if not I suspect there are gonig to be a lot of old terraced houses from the 1900's left empty and an even more severe shortgage of available rental proerties. 

Even so who’s gone be renting out these e/f properties that aren’t “feasible” to get to a c or b. 

2-3 years Ago when I was looking at properties I didn’t even look at the epc, now it’s the first thing I would look at. 

With energy prices going the way they are inefficient properties will be avoided like the plague 

blackshirtuk

If you need a mortgage, the number of lenders willing to lend on a below E rating will be severely limited and may impact the rate you are able to get.

This is probably going to happen with below "C" rated as we get closer to that deadline, if we are what the rules will actually be anytime soon!

ProDave

If you don't own this property yet, keep looking for something EPC C or better.

I firmly believe that eventually people will wake up to the EPC rating of a house and one with a poor rating will be worth less than one with a good rating.  I would not want to be the owner of a poor EPC house when that change happens.

dimbo61

I own a 1900 terraced house in Manchester.
After spending about £30,000 over the last 5 years it now has an EPC of C making it the only one on the row.
New combi boiler, new double glazed windows and doors, 270mm loft insulation, LED bulbs in every light fitting. 
Simple really 
Tenants energy bills gone up but so have everyone's else 

cidfenmaria

dimbo61 said:

After spending about £30,000 over the last 5 years it now has an EPC of C making it the only one on the row.
New combi boiler, new double glazed windows and doors, 270mm loft insulation, LED bulbs in every light fitting. 
Simple really 

what else did you spend the money on to achieve that