Good EPC ratings are increasingly important for tenants when considering which properties to rent, it’s been claimed.
Nicky Stevenson, managing director of the Fine & Country lettings agency brand, says: “As uncertainty surrounding energy costs lingers, renters are increasingly prioritising energy efficiency. Statistics from Dataloft and the Property Academy reveal that 78 per cent of renters considered the Energy Performance Certificate important when searching for a property.
“With government regulations that any newly-rented properties must have an EPC rating of C or above by 2025, landlords will need to take steps to improve their score.
“According to Dataloft, in the last year just 53 per cent of properties in the private rented sector had an EPC rating of C or above; however, a much more promising 94 per cent had the potential to achieve this rating.”
Stevenson says that more generally, the already-strong lettings market is set to heat up further as spring develops.
“Rental prices remain high, supported by demand outstripping the market’s persistent low stock levels. Some in the industry have projected a six per cent increase in rents by the end of this year, increasing by around 20 per cent by 2027.
“The market is also seeing a resurgence in metropolitan areas, as the hangover of Covid eases and city living returns, increasing demand for value-for-money homes. According to Dataloft, 53 per cent of properties let in the first two months of the year were flats, similar to pre-pandemic levels.”
Looking specifically at the prime rental sector, Stevenson says that the average rent for a prime market property is up 13.6 per cent year-on-year. “Only in the North East and South East are prices lower. This may be attributed to renters seeking smaller, more affordable accommodation as a response to the rising cost of living” she notes.
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Utter twaddle
Total nonsense, we all know the EPC system is flawed and so the output of that system is inaccurate . The tenants would have to decide if they wish to live in a ‘D’ rated 3 bed Victorian terraced…. Or…. Live in a homeless shelter. 🏡
As if tenants had a choice in this market!
They have a choice to vote for sensible politicians who support the PRS, if not…. Skid row.
More wise words about making domestic rental units better, reducing energy waste and improving the 21 million EPCs built-up over the last 14 years on the public national database. I've actually met Nicky Stevenson and she is one of the most intelligent, forward-thinking property professionals in our industry. There are, sadly, a tiny minority of domestic landlords who don't 'get it' but the asset value of their units is diminishing all the time. The Big 7 mortgage lenders in the UK are steadily making is more difficult to get a new mortgage or re-mortgage on houses and flats with awful EPC Grades. Makes sense - would you want to co-invest your capital in poor quality, poor performing assets that tenants don't want?
I hope everyone reading Landlord Today has got their own family home energy efficient and Lodged an EPC of Grade C or better on the national database. I have and so have other landlords that I do business with. I'm not thinking of selling or re-mortgaging my family home but as EPCs last for 10 years it's crackers not to get ahead of the inevitable problem if I fail to take action.
Goody, a new game. Can we play who's got the best EPC on their own personal residence?
Mine's A93
Having seen these "experts" complete their tick box exercise in my rental properties, there's no way I am wasting my own after tax earnings in seeking their "advice" in getting a useless EPC in my own home.
I'm perfectly capable of extrapolating information from the rental EPC reports to use anything sensible in them in the properties where I pay the energy bills.
I wonder if you run an EPC assessor business?
That’s akin to the passengers of the Titanic 🚤 refusing to step in the life boat because the seats were wet…. They have no choice, as a nation we have millions of older Victorian terraced and semi’s that will never reach a C, or be too expensive to do so, owners and tenants THINK they have a choice…. Nope, there is no stock of both out there, whatever the EPC.
Simon
I don't disagree but nowadays the Titanic passengers would complain about the seats being wet.
The real solution is to ensure there are sufficient homes available so market forces can influence the quality of properties.
This either needs more homes or fewer people looking for homes.
In the 1921 census and earlier ones, most small working class homes had 10 or 12 occupants including multiple generations and lodgers.
Those who would complain about the wet lifeboat seats would also complain about overcrowded homes.
Just over 50 years ago when I was a student I shared a big 4 bedroom flat with 7 other guys (and a few girls at weekends) but that same flat now needs an HMO licence if occupied by more than 2 unrelated adults.
There are many ways in which the safety of properties can be improved without demonising Landlords but our politicians are just far too blinkered and anti PRS.
EPC story = Martin Gibbons fantasy post. Can’t we get him blocked?
Robert
Very good point.
Back in the 1950s my mother was a midwife and used to work a lot on one of the big Council estates. She often talked about families with 13 or 14 children. Those houses have only ever had 2 or 3 bedrooms. These days they are deemed to be overcrowded if more than 4 or 6 people live in them.
Tricia
I'm surprised you subscribe to the no platform strategy so beloved by our snowflake students these days?
Robert,
I am just fed up with the fictitious Martin Gibbons popping up with the same post every time EPCs are mentioned. He is not adding to the debate - I believe he is simply a bot.
Tricia
I agree he's a total pain but Britons should defend with their life his right to speak freely - and then ignore him.
PS. I'm surprised his PC doesn't overheat in his ultra insulated house!
Hi Martin, I personally find the EPC rating system flawed and a scam to fleece landlords further.
However, in your view what can a landlord do in a situation where they would like to install PVC windows to increase "energy efficiency" but cannot because the property is in a conservation area and permission is refused by the local council?
Never known a tenant look at, or ask about the EPC, most don't know what an EPC is, their main aim is to secure the tenancy, tenants have little choice in the current market, it's us, the landlords that have the choice
I also found EPC's never mentioned and most tenants were on the most expensive standard tariffs when the more enterprising of us shopped around for cheaper tariffs but they were too idle or feckless to shop around.
Now we all pay the same higher tariffs, is that a success for levelling up?
We have over double the amount of people entering the country than new dwellings being built, couple that with reduced rentals available it’s basic maths to see any decent property in an alright location will be popular. So I just don’t believe this as a sweeping statement.
I have some D rentals, Victorian so as energy efficient as they can be without pulling apart and insulating walls and they have tenants queuing to get into them.
What a load of rubbish- I have been letting property since 1986 and I cannot recall a tenant asking for anything documented- all they want are the keys, repairs when they report them and generally being left alone to get on with their lives in their home- it’s not a friends relationship. It’s very straightforward as a landlord respond quickly to problems and deal with them properly and tenants pay the rent on time and keep the place clean and tidy.
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