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TODAY'S OTHER NEWS

Selling a low-EPC Buy To Let? You may have to slash the price…

Rightmove is warning landlords and other sellers that properties with poor levels of energy efficiency may have to sell with a discount. 

The portal says buyers over coming years will try to negotiate reductions on asking prices of homes with the poorest EPC ratings to factor in costs of making improvements.

Landlords and owner occupiers who have made green improvements before selling have made as much as 16 per cent extra on average, compared to those who haven’t made any improvements.

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Searching for green terms is becoming more popular on Rightmove, with searches for solar panels rising from position 500 to position 98 in keyword searches, and heat pumps rising from 1,000 to 190.

Rightmove also wants that government proposals for landlords to improve homes up to an EPC rating of C would lead to further stock shortages and rising rents in the short-term, with one in five landlords saying they will sell up.

The findings from Rightmove’s Green Homes report, out today, reveals that some 41 per cent of home-owners have already made changes to improve their home, but of the remaining 59 per cent the biggest reasons for not doing so are that they don’t feel they need to make improvements, or that such improvements are too expensive to make.

A separate Rightmove study analysed over 200,000 homes that had sold twice, with an improved EPC rating the second time.

Those who had upgraded their rating from an F to a C added an average of 16 per cent to the price achieved for their home.

Moving from an E to a C banked sellers an extra eight per cent on average, and moving from a D to a C resulted in an average of four per cent extra.

The average EPC rating of a home in the UK is a D, so the homes with the lowest ratings of an E to a G are likely to be the first to start seeing buyers trying to negotiate discounts, Rightmove anticipates.

Rightmove’s Director of Property Science Tim Bannister says: “Improving a property’s green credentials is critically important as the UK strives to hit Net Zero. 

“The immediate challenge is the sheer number of properties that are currently below an EPC rating of C and the costs involved to fix this. 

“There has been much debate about what could happen in the future to homes with poor energy efficiency, and the government has said they will make sure these homes can still get mortgages. 

“But I don’t think it would be a surprise if in 10 years’ time we see that people taking out mortgages or remortgaging a home with the lowest EPC ratings find that they miss out on the best mortgage rates.

“We’ll also start to see buyers become much more aware of the green improvements that are needed, and factor this in when they consider how much to offer a seller. It’s likely to be a gradual rather than a swift change, but we can already see the green price premium when improvements are made. 

“Of course, improvements that make a home more energy efficient often also means the condition improves, such as installing new windows. But the end result of making improvements is not just a refurbished home worth more money, it’s often also a greener home.

“It’s clear that many home-owners want to make improvements, but the complexity and costs of the changes means that people need more help and financial assistance to know which changes to make and when. 

“We know saving on energy bills is the biggest motivator to make changes, and in future we’ll need to consider costs for cooling our homes as much as heating them, as we found during the recent heatwave. This opens up more questions about the best systems that people should be installing to futureproof their homes.

“If the government brings in legislation for landlords to improve their properties, and if the sums don’t add up to make the improvements, then some will sell up. 

“This is especially likely among those with smaller portfolios and those who would need to make significant changes to cheaper homes. If a number do sell up then it could exacerbate what is already a severely stock-constrained rental market, increasing rents for available homes in the short-term, before the benefits of greener properties filter through.”

Want to comment on this story? If so...if any post is considered to victimise, harass, degrade or intimidate an individual or group of individuals on any basis, then the post may be deleted and the individual immediately banned from posting in future.

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    Little point in doing anything at present, just wait and see.

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    2 weeks training to become an EPC assessor. Then they have the power to wipe out your letting business.EPC on my property 10 years ago, D, recommendation, fit new boiler to improve to C. 10 years later, this year. New boiler fitted, still a D. Recommendations to attain C. Underfloor insulation, fit a heat pump, solar electricity, solar water heating.. Cost £40k ish, annual saving £101. What a joke.

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    Actually, I believe there is a two day remote course with the Energy Trust delivered over a weekend. Might be worth qualifying ourselves.

     
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    😂😂 Of course I would have to slash my asking price….. in an area where there are around 40-60 people wanting to view everything that comes up 🙄, and the agents stop appointments for viewings at around the 2nd day because of the numbers. There is a huge shortage of stock, prices are not, and will not, be slashed 🤥🤥….. and I am one of those landlords who WILL be selling, at my age and time in life the “ investment “ makes no sense. The tenants to come are in for more rent rises.

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    They keep messing around with the algorithms. There’s no consistency in what they are doing. Useless tw*** in Westminster needlessly changing things.

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    Unless I have confidence that the energy efficiency suggestions are appropriate for the property and won't cause issues such as damp I won't do anything.

  • George Dawes

    Imagine all those properties once worth millions then worth zero

    Net zero

    All due to a silly pointless piece of paper …



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    Do you think that a property that has been upgraded from an F to C has not had other improvements that might account for the price increase? A property with an EPC F probably has had nothing done for years so as well an energy improvements it has had a new kitchen, new bathroom, new carpets, redecoration etc.

    Just statistics!

  •  G romit

    This is part of the grand plan, the NWO.
    Devalue assets so that big business can snap up these assetts at knockdown prices, so poor EPC, sitting tenants which will be hard to move on, punitive taxes (Sec.24) Also happening to farmers, why is Bill Gates the biggest landowner in the USA?

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    And dont forget - government owned stock and housing association stock is exempt.

    Rules for thee, but not for me...

     G romit

    NWO!!
    "They" own everything, own nothing!

     
    PossessionFriendUK PossessionFriend

    Needs a Judicial Review !

     
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    Yeah funny that, eh? Not so worried about ‘climate change’ after all it would seem. Funny how many pointless arbitrary rules only seem to affect the PRS.

     
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    Rightmove stats are rubbish, I don’t believe this report, I feel the crap that is spewed out here is getting worse, all the scaremongering created by these reports is ridiculous..

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    I agree a low EPC might deter investors, until there is some certainty about the Govts plans. However for owner occupiers the main issue is surely that prices have shot up, so I'd guess they will still be willing to buy a low EPC property, and the rules of supply and demand will apply. Many people still look for "character" and "period features" rather than energy efficiency. Also a lot of holiday lets are "character cottages" which have a low EPC, so there is still that market available if the property is in the right area.

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    Is there any point in gaining a 'C' for a holiday property which is only used in the summer months?

     
  • George Dawes

    I’d rather burn my houses to the ground than let some nwo scumbag take everything my grand parents , my parents and myself have worked for

    I avoided the recent unnecessary medical procedure and have a natural rebellious attitude towards authority , looks like it probably saved my life

    No doubt this’ll mysteriously get deleted … 🤦‍♀️

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    I know exactly how you feel Geaoge.

     
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    Owner occupiers and family’s in multiple occupation have done very well off the backs landlords dragging up the price of their property too without having to do anything and exempt. We know who are making the rules.

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    Micheal, l think you need to rephrase your comment. My wife and l have taken property in disrepair and in addition built on brownfield sites improving the areas. Councils have allowed tenants to destroy properties, then demolished them, using the euphemism - unpopular with tenants !

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    Councils demolishing properties, in Norwich there were 4 3 bed council houses built early 50s on a hill (we don't have many hills in Norfolk) cracks appeared so tenants re housed and houses boarded up, left like that 5 yrs then demolished 15 yrs ago, site now over grown, on the same hill there are 50+ terraced houses built 1880s and still standing, 5 minutes walk to city centre, just an example of how waste full councils are, and I'm sure the houses could have been repaired and saved, unbelievable aren't they, build there, or sell the site so's that some one else can.

     
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    Edwin my friend that’s a different kettle.

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    I’m always amazed that EPC assessors have the nerve to put their name to a document that says you should dig up the floor and spend £4000-6000 on insulation… to save £44 a year! So, a payback time of around 120 years then. I see. Do these numpties never look at themselves in the mirror and wonder where they went wrong?!

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    James & Christopher also raised this point about digging up Concrete Floors it’s a mad idea anyway you look at it.
    Surveyor’s and Building Department’s need to address this issue again, it has to be entirely possible to surface lay on the existing floors to bring up to standard of compliance. So many products on the market and if you loose an inch or so in height what difference, most ceilings are higher than modern requirements anyway. Come on now specify please and stop the dig filling up Skips.

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