The demand for rental property in London is such that being a landlord in the English capital is an appealing activity for many. Of course, the reality of being a London landlord is quite different from the theoretical world, which is why David Harris & Co is on hand to assist you navigate the London rental market.
Of late, there has been a lot of focus on increased stamp duty impacting landlords looking to extend their property portfolio, or enter the market. However, a new study by epIMS, the EPC and energy efficiency platform developed for landlords, highlights another financial matter that UK landlords need to consider.
Across England, estimates suggest there is close to 5 million private rental properties. Just over half of these properties have an EPC rating which stands below C. With the average cost to upgrade a rental property to an EPC rating of C costing £8,000; the estimated total cost to upgrade the nations private rental property stands at £19.8 billion.
Craig Cooper is the COO of epIMS and he said: “Labour has proposed a deadline of 2030 for all landlords to bring their rental properties up to a minimum EPC rating of C. This is an ambitious plan that is yet to be enshrined in law, but it shows clear intent from the government which means a legal minimum rating is almost certainly going to be introduced at some point in the near future. This will understandably be a concern for landlords, especially with the government suggesting that the average cost of completing the required upgrades is around £8,000 per property. But we’re here to reassure landlords that, in reality, this cost can be significantly reduced.”
Craig concluded by saying: “We have identified a number of energy-saving solutions that, when tailored specifically to each property, are cost-effective, unbiased, and evidence-based, using the latest energy-saving technology to enable landlords to achieve a rating of C or above with minimum expenditure. We encourage all landlords to speak to us and discover how they can best upgrade their portfolio without having to incur formidable costs.”
While it is helpful to look at the London rental market separately from the nation as a whole, this is also an issue that will impact the capital.
There are around 1.2m private rental properties in the capital, which is more than double the size of any other region. In one positive outcome for the capital, London has the lowest proportion of sub-standard properties in the country, at 44.6%.
According to the study, the estimated cost to improve London rental property stands at £4.7 billion, and the overall average upgrade cost stands at £9,000 per rental property. As way of comparison, the region with the next highest level of upgrade costs is the West Midlands, with a bill of £2.2 billion. The South East has a cost of £2.1 billion, the same as the North West. The East Midlands and the East of England have an estimated upgrade cost of £2 billion.
We know you’re busy, so here are the key points London landlords need to be aware of when it comes to EPC issues:
Significant investment required to meet 2030 EPC C rating deadline
Despite having fewer sub-standard properties, upgrade costs remain substantial
Proactive planning and investment will be crucial to compliance
We’re on hand to assist you, so if you have any concerns or questions about EPC matters, or anything relating to the Finchley lettings market, get in touch.
We have assisted many Finchley homeowners and landlords looking to let their property, and we know what tenants are looking for when searching for rental accommodation. You can take the stress out of connecting with likely tenants by turning to a local letting agent in Finchley.
If you want to make an informed decision in and around Finchley’s lettings market, we are here for you. If you have any questions about the local rental market, or you need assistance, please contact David Harris & Co today. Call us on 0208 346 9122.
