Over the last few years, landlords have faced many changes. Tax reforms, rental reforms and energy efficiency measures have meant renting out properties is more complex (and expensive) than ever. But with changes to Government plans announced last Wednesday, is good news on the horizon?
Last week, controversial (and costly plans) for improved EPC targets by 2025 were scrapped by Prime Minister Rishi Sunak.
So, how does this impact property investors (and tenants)?
In this quick read, we look at whatโs been going on.
๐๐ก๐๐ญโ๐ฌ ๐ข๐ญ ๐๐ฅ๐ฅ ๐๐๐จ๐ฎ๐ญ?
As part of the Net Zero by 2050 agenda, the Government aimed to reduce carbon emissions by 68% by 2030 through a series of reforms. One requirement was for all rental properties to boost EPC ratings to a minimum of C by 2025. Others included banning the use of gas boilers in new-builds.
Many landlords have been extremely concerned about the affordability of energy efficiency measures like double glazing, heat pumps and additional insulation. This has resulted in many landlords changing the types of properties they invest in or exiting the rental market completely.
๐๐ก๐๐ญโ๐ฌ ๐ก๐๐ฉ๐ฉ๐๐ง๐๐ ๐ง๐จ๐ฐ?
The Government has decided to scrap these proposed reforms and take a โmore pragmatic, proportionate, and realistic approach.โ
As a reaction to the cost-of-living crisis, the Government acknowledged that significant changes within two years would severely impact people already struggling to meet everyday costs.
๐๐ฆ๐ฉ๐๐๐ญ ๐จ๐ง ๐ญ๐๐ง๐๐ง๐ญ๐ฌ
Initially, the proposals may have caused rent increases, so landlords could make the necessary changes. There were also concerns that properties would need to be vacant to complete all the work. For now, with the recent news, these concerns have eased.
๐๐ก๐๐ญ ๐๐จ ๐ญ๐ก๐๐ฌ๐ ๐๐ก๐๐ง๐ ๐๐ฌ ๐ฆ๐๐๐ง ๐๐จ๐ซ ๐ฅ๐๐ง๐๐ฅ๐จ๐ซ๐๐ฌ?
With the two-year target off the books, landlords might be able to breathe a sigh of relief for a little while at least.
However, that doesnโt mean they should ignore energy efficiency measures altogether.
Reducing carbon emissions is still on the Government agenda and should be a priority for everyone, especially landlords.
Changes to gas use and boiler requirements may be implemented even if at a later date.
For more advice about energy efficiency measures and how they affect your rental investments, speaking to an experienced letting agent is always a good idea.
Theyโll be up to date with all policy changes and can help you prepare for whatโs coming โ whenever that may be.
If youโre a landlord and need advice or have a property to rent, call us at Belvoir, weโre here to help.
