EPCs for BTL (since when?)

RHemmings

It seems to me that the coming changes may possibly affect housing in the following ways. 

Houses that have an EPC of C or above will appreciate, and houses of D or below will depreciate. Pretty much due to supply and demand. As the more energy efficient houses will be attractive to both home owners and BTL'ers, while the less efficient houses only to home owners. It will be more complicated than that of course as home-owners may be aware of the lack of attractiveness of those houses when it comes to sell. Also some landlords will be motivated to buy energy inefficient houses to upgrade and rent out. 

Sitting tenants in a house of D or below will have a bit more power. In that during the transition period, if the landlord wants the tenants out they will have to do work to bring the houses up to spec to rent them out to new people. This will give tenants more ability to say no to rent rises during that period. 

If houses of low energy standards depreciate, then there will be a lot of motivation for landlords to upgrade the energy efficiency. As they are already committed to the asset and even if they want to see, I could see it getting to the situation where the money required to upgrade is less than the increase in value due to the upgrade. In which case the landlords will be motivated to spend some more money to recover the wealth that they have lost. 

I wonder how property developers will be affected. The houses that I've seen which have been developed have all focussed on the highly visible. Kitchen, bathroom, ceiling lights, paint, garden landscaping. The ones that I have seen haven't improved energy efficiency. Is this the experience of others? And if so, will this focus change? 

BTW: I do not believe that I have a crystal ball. These are just random musings.  

In response to @ComicGeek's comment, I'm personally looking for properties that can get to a B without too much change, at least. Part of that is I don't want to be in a freezing house that costs mega amounts to heat. And, part because I agree that energy inefficient houses are going to go the way of the dodo. 

_Penny_Dreadful

@RHemmings, I have been looking at new builds recently and generally I've found the ones I've been looking at to be EPC B.  I have decided that I can achieve far better than that by building my home if I can find the right piece of land.

Some mortgage lenders are already offering more favourable rates to properties with EPC of B and better.  All my properties are EPC of C, even the older (built 1885) place in Aberdeen according to its recent EPC.  It does have a combi-condensing boiler and I wonder if in the future that will mean a C is no longer achievable because the boiler requires the burning of a fossil fuel.

ComicGeek

Those older properties with gas boilers that achieve a C or D rating at the moment do so purely because of the lower cost of gas compared to electricity.

How that future (and mandatory) change from gas to electricity is going to be reflected in EPC ratings is anyone's guess at the moment. And a big difference between those properties with direct electric (electric boilers, panel heaters, underfloor heating mats etc) and those with heat pumps being 3-4 times as efficient.

As someone who actually works in the industry, I'm not sure how any landlords can effectively manage the risks with the really poor information available on future changes - and that's from someone who has been involved with EPCs for about 15 years now!

MultiFuelBurner

If a landlord spends £10k on efficiency enhancements as has been muted then that will just be passed to tenants.

It is a business after all and not a charity.

The upshot will be more landlords leaving the market earlier than they may have planned and even higher rents for the above reasons and supply and demand.

I wouldn't.want to be renting right now.

RHemmings

_Penny_Dreadful said:

@RHemmings, I have been looking at new builds recently and generally I've found the ones I've been looking at to be EPC B.  I have decided that I can achieve far better than that by building my home if I can find the right piece of land.

Some mortgage lenders are already offering more favourable rates to properties with EPC of B and better.  All my properties are EPC of C, even the older (built 1885) place in Aberdeen according to its recent EPC.  It does have a combi-condensing boiler and I wonder if in the future that will mean a C is no longer achievable because the boiler requires the burning of a fossil fuel.

I know someone who teaches sustainable design at a university. He told me that if land can be obtained, then it's possible to get sort of flatpack homes put on them. And, some of these are extremely energy efficient. Better than standard newbuilds even.

I did look into it, but I simply can't find any land for sale with planning permission. And, even if I did, the total cost would be very high indeed. Way, way, beyond what I can afford. 

Maybe he meant a company like this: https://www.baufritz.com/uk/homes/portfolio?_gl=1*1m7w377*_up*MQ..&gclid=Cj0KCQjwx5qoBhDyARIsAPbMagCOG9mWlkOJ_DIelVA104MeGncq2lpCCEXyfeOYGVcRE4LqMs3KIhsaAkXyEALw_wcB   There are companies that do cheaper houses too. 

_Penny_Dreadful

RHemmings said:

_Penny_Dreadful said:

@RHemmings, I have been looking at new builds recently and generally I've found the ones I've been looking at to be EPC B.  I have decided that I can achieve far better than that by building my home if I can find the right piece of land.

Some mortgage lenders are already offering more favourable rates to properties with EPC of B and better.  All my properties are EPC of C, even the older (built 1885) place in Aberdeen according to its recent EPC.  It does have a combi-condensing boiler and I wonder if in the future that will mean a C is no longer achievable because the boiler requires the burning of a fossil fuel.

I know someone who teaches sustainable design at a university. He told me that if land can be obtained, then it's possible to get sort of flatpack homes put on them. And, some of these are extremely energy efficient. Better than standard newbuilds even.

I did look into it, but I simply can't find any land for sale with planning permission. And, even if I did, the total cost would be very high indeed. Way, way, beyond what I can afford. 

Maybe he meant a company like this: https://www.baufritz.com/uk/homes/portfolio?_gl=1*1m7w377*_up*MQ..&gclid=Cj0KCQjwx5qoBhDyARIsAPbMagCOG9mWlkOJ_DIelVA104MeGncq2lpCCEXyfeOYGVcRE4LqMs3KIhsaAkXyEALw_wcB   There are companies that do cheaper houses too. 

I know which company I want to use for the house, it's finding the land which is proving to be tricky.  I wish it could be easier for people to build their own homes in the UK instead of being stuck with the cookie cutter new builds.  Although if you have enough money I guess it's possible.  Unlike this person I don't have the best part of £1 million to spend on a house just to knock it down and rebuild.

https://www.aberdeenlive.news/news/aberdeen-news/cults-mansion-bought-over-800000-8570191

RHemmings

Good luck with finding land. I want to stay not too far from a city centre, so I've got no chance really. 

_Penny_Dreadful

RHemmings said:

Good luck with finding land. I want to stay not too far from a city centre, so I've got no chance really. 

Thanks.  I'm thinking Aberdeenshire or the Highlands so I might (fingers crossed) stand a change.