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BTL landlords presented with ‘challenges’ that could see many exit the market

BTL landlords presented with ‘challenges’ that could see many exit the market

The Private Rented Sector (PRS) faces significant barriers to the adoption of energy performance improvement measures.

The latest data from the Office for National Statistics (ONS) shows that private rented dwellings have a better-than-expected median energy efficiency score but are generally still below the rest of the housing sector.

Overall, in England, the average energy efficiency score for a private rented detached property is 58, for a semi-detached, 60, for a terraced house 62, and a flat and maisonette 68.

In Wales, these read as 56, 61, 61, and 68, respectively.

According to the ONS data, the average energy efficiency score in England for all dwellings in England up to March 2021 is 66 and, in Wales, 64 (band D equivalent for both).

The government intends to have as many properties as possible, score at least 69 – band C- by 2035. However, the age variation of housing stock could prove a challenge across the residential property sector, particularly in the PRS.

Timothy Douglas, policy manager at Propertymark, said: “It is now well over twelve months since all properties rented on a relevant tenancy in the private rented sector in England and Wales must meet the EPC band E rating, so it is good to see letting agents and landlords meeting the requirements and adhering to the rules – everyone wants to see a rented property that is safe, secure and warm.

“However, the government’s latest proposals for EPC band C presents a much tougher challenge for many properties across the country.”

“With the wide range of property types in the private rented sector and proposals for a £10,000 cost cap, landlords across the country are being presented with financial and practical challenges, which if not tackled, could result in a reduction in supply and landlords exiting the market,” he added.

Source: Property Industry Eye - NOVEMBER 11, 2021 | MARC DA SILVA

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