Energy legislation to make a big impact on Cornish rental market!
The government has announced new dates for energy efficiency compliance in rental properties. In an effort to improve standards of rental properties across the county the government has been proposing energy efficiency standards for some time and has just released dates of when the legislation comes into force.
The Residential Landlords' Association have reported that by April 2018 it will be unlawful to let out a property with an F or G Energy Performance Certificate rating, as a new let. By April 2020 the requirement for a minimum E rating will apply, not just to new lets but also to existing tenancies. By 2025: the target is for a minimum D rating and by 2030: the minimum target will be a C rating.
What does this mean? Many properties in Cornwall are traditional stone cottages or converted rural barns. Beautifully presented but not energy efficient. We recently let a fantastic detached house set in approximately an acre of gardens and achieved £1650pcm. The house itself was built 150 years ago and the tenants love the character and charm. That being said, the owners will not be allowed to let it form April 2018 because the EPC rating is F. The property is listed as well so they cant add double glazing and gas central heating for example! When we told the owner of the forthcoming change in legislation he asked for help and guidance which we have given at no cost as part of our managed service.
There are some simple cost effective ways to improve the energy efficiency of a house and we are working with the owner to raise his rating to reach the standards of a E rating or perhaps even a D, safeguarding his ability to rent his property out for the next 10 years.
This landlord is not alone and the figures show that county wide there could be an average of up to 40% of the housing stock that wont meet the E,F & G standards. What impact will this have on the rental market? The constant legislation changes and new laws are making BTL investments less and less attractive to landlords and certainly if you are not using the services of a professional agent, the pitfalls and potential exposure for a landlord are getting bigger and bigger.
For help or advice about your rental property, contact us today.