For years there has been talk of landlords fleeing the buy-to-let market but, despite the slew of regulatory and tax changes that continue to hit the sector, and of course the massive curveball that was Covid, the reality is it is far from on its deathbed.
The sector is proving its flexibility; as landlords move away from so-called vanilla buy-to-let, lenders are stepping up and diversifying their offering, which plays no small part in keeping the market afloat.
The latest challenge for the sector is the energy performance certificate (EPC) requirements, with a minimum rating of C needed on newly rented properties by 2025 under government proposals — that’s just three years away. By 2028, all tenancies will have to meet that same requirement.
Lenders are beginning to offer special products for properties with high-EPC ratings
I’m sure we all understand the big picture on this: upgrading the efficiency of properties to help us move towards the goal of zero carbon emissions by 2050. It’s a very noble cause but of course it won’t be achieved without some hurdles for landlords. To bring many properties up to the standards that will soon be expected will be a costly affair for many.
Lenders are beginning to offer special products for properties with high-EPC ratings, and deals to help landlords improve their homes in a bid to make the changes more achievable.
And, as always, brokers will play a crucial role in ensuring new and existing landlord clients are up to date well in advance of any rules, and in reassuring them that even this considerable obstacle can be overcome.
