Happy New Year Landlords.

[Melboy]

Well, one can only hope,  😅

Interesting article in Money Mail which you may also find to be interesting as well.

https://www.thisismoney.co.uk/money/buytolet/article-10350255/UK-landlords-face-slower-house-price-growth-tighter-regulations-2022.html

[Richlist]

Thanks for that, very interesting and comprehensive article.

 

[bil8999]

Time may be fast approaching, time to sell up and move on.

All the best for the new year

[Carryon Regardless]

Mel thanks for the late Xmas pressy, I'll consume some more when I've more time.

On the bright & possibly over optimistic side, while we do have expected challenge ahead, there is a gentle realisation that we have been suffering continual legislative abuse. Just maybe the buggers will leave us alone some.

Meanwhile Guinness is on discount at 'Spoons, things could be worse.

Happy New Year you all.

 

[Grampa]

I'm already starting a plan of action to get my properties up to a EPC rating of a C. Partly because of the planned requirement for renting and partly for the purpose of obtaining lower mortgage rates.

I have just purchased a new property in dec that was a D with a year left on the current EPC so with a little work have just obtained a C rating. I have other one also currently a D running out in feb but have had double glazing fitted recently so that should reach a C with no further work. 

However, I can see a lot of agents and landlords kicking this can down the road and then there being a huge rush to be compliant when the law kicks in and the works for some will be huge.

 

[Richlist]

Some landlords may find the costs to comply with the EPC rating high but the other way to look at it is.....

* The expense is tax deductable.

* Improvements made in order to comply will increase value &/ or saleability.

* The property will be more attractive to potential tenants.

* Rents may be able to be increased.

* It doesn't need to all be done at the same time. The work can be planned to meet timing, finance, availabilty, voids etc.

* Any work can be spread over more than one tax year.

* Perhaps the most important.......those landlords looking to buy property which hasn't had the work done should be able to negotiate a substantial discount to cover part of the costs.

* Etc. Etc.

 

[Melboy]

For me 2021 was an expensive year for upgrades. New boilers, Electrical upgrades and certification and all new EPC's which I can get for £50 a property but I agree with RL that you have to keep going with improvements and that overall if you want to sell the property on at anytime then you can command a higher sale value.

The only planned upgrade I have for this year is the installation of a new bathroom suite for one of the houses. I am in no doubt other things will appear that need to be done..... unplanned.   😀

[Grampa]

23 hours ago, Richlist said:

Some landlords may find the costs to comply with the EPC rating high but the other way to look at it is.....

* The expense is tax deductable.

* Improvements made in order to comply will increase value &/ or saleability.

* The property will be more attractive to potential tenants.

* Rents may be able to be increased.

* It doesn't need to all be done at the same time. The work can be planned to meet timing, finance, availabilty, voids etc.

* Any work can be spread over more than one tax year.

* Perhaps the most important.......those landlords looking to buy property which hasn't had the work done should be able to negotiate a substantial discount to cover part of the costs.

* Etc. Etc.

 

Have to disagree on the one in red. I think in the last 10 years I have only known 2 maybe three potential tenants even bring up the subject of the EPC or rating. Although for the last few years I have staff dealing with the sharp end and I'm asleep in the back office.

[Richlist]

I certainly agree that tenants rarely, if ever, bring up the subject of EPCs. But that can be a missed opportunity for the agent or landlord especially if lots of work has been carried out to the property. 

Surely the secret is not to focus on the EPC certificate which we know most tenants just can't be bothered with......probably because they either don't understand it or don't want to understand it. Instead focus on the details of the work.......point out the new double glazing and the 12 inches of loft insulation and the super efficient heating system that together will result in low energy bills compared to anything else currently on the market. Sell yourself and the property by pointing out the newly installed features. 

If lots of work has been carried out to raise the EPC rating a couple of notches isn't it reasonable to expect an agent to at least make the effort to use it as a feature to attract new tenants ?

[Grampa]

18 minutes ago, Richlist said:

 

If lots of work has been carried out to raise the EPC rating a couple of notches isn't it reasonable to expect an agent to at least make the effort to use it as a feature to attract new tenants ?

You may think that but there has never been a problem in attracting tenants if a property is priced correctly and listed on all the normal portals there has never been in my memory such a glut of properties there hasn't been numerus tenants applying for them. Covid has made the situation even worst for tenants as there are not so many tenants moving and therefore less on the market which has driven up rental prices.