It is estimated that the amount of properties in need of upgrades to their energy efficiency before April could reach approximately 300,000. Landlords that do not comply could be in line for thousands of pounds in fines.
A new minimum standard of energy efficiency will come in to force in three months time and no new tenancy can be offered should this minimum standard not be met. Extensions to existing tenancies for properties that do not meet the minimum energy efficiency standard will no longer be possible by 2020.
Homes that need to be upgraded must at least meet the government's "E" rating. As part of the government's Clean Growth Strategy, every house must qualify for a "C" rating by 2030. Only 26% of privately rented properties currently qualify for a "C" rating.
Tenants could reap a significant benefit in terms of reduced energy bills.
How much will it cost?
The initial cost of upgrades to affected properties is capped at £2,500 for buy-to-let investors.
A number of different options of funding this amount are available including:
- The Green Deal
- Government subsidies
According to the Department for Business, Energy & industrial strategy, the likely average cost of these will be £865.
Some landlords are taking advantage of the new rules to bring cheaper properties into compliance, taking advantage of the upgrades to attract tenants.
Are you thinking of purchasing a buy-to-let property?
Our Mortgage team here at Westminster Wealth can ensure that you receive the most suitable mortgage for your personal circumstances, needs and objectives. Contact us today.
Your home may be repossessed if you do not keep up repayments on your mortgage.
Our charges are usually between £395 and £995 depending on the type and amount of borrowing required and individual circumstances.
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