A change in the UK property law is set to make it illegal to rent a property with an energy efficiency rating in the bands F or G. The new rules come into effect from the 1 April 2018, and apply to all new tenancies. Existing tenancies have until 2020 to make the necessary changes. For non-domestic tenancies, landlords have until 2023 to bring the rating up to the E level or above.
What this means for prospective landlords is that you have less than a year to meet the E grade rating for new tenancies in order to comply with UK property law. So this is something to think about when investing. However, the cost of upgrading buildings to meet the new regulations depends on what work is needed. This could be anything from replacing a few light bulbs to an extensive central heating overhaul with a new boiler and insulation in loft spaces.
In order to help landlords meet the new specifications, the government has re-launched its Green Deal which loans money to help landlords and homeowners meet their targets. The loans, which will be financed through the Green Deal Finance Company, will be tied to the metres of the property and be repaid through energy bills. The idea is that the loan will be repaid by the savings made on energy use and removing domestic inefficiencies.
So there will be help to meet the cost of any improvements that need to be paid. But with only around six months to go to meet the grade, landlords should start to think about making necessary changes in order to comply with the law. However, it’s not just a legal matter. Making your property more efficient can add value and make it a more appealing proposition for tenants. Adding insulation, better windows, new boilers and other measures can be a great way of increasing rental income and adding capital value to your investment. And with these new laws coming into effect, now could be the perfect time to carry out some work.
If you’d like to know more about the new efficiency laws or the best value efficiency savings you can make on investment properties in the Norfolk area, then get in touch with our team here at Agile. We’re always striving to stay up to date with the latest property legislation and are perfectly placed to offer advice about the local area.
To find out more about the local and national property market, or if you would like to chat about anything to do with property investment, give us a ring on Norwich 01603 567804 or send us a message.
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