The North of England attracts the largest price and rental premium for more energy efficient buy-to-let properties
Nationwide makes ‘biggest’ announcement with thousands set to ‘benefit’
Nationwide has issued the “biggest” announcement for customers who are set to “benefit” from renting energy efficient homes. The Mortgage Works, which is a Nationwide subsidiary, has found the North of England attracts the largest price and rental premium for more energy efficient buy-to-let properties.
With potential value added to house prices, coupled with higher rents, the majority of landlords in the Midlands and North are likely to recoup the initial investment within five years, it found.
The latest data from the English Housing Survey shows that 51 per cent of the private rented housing stock is currently rated A to C, up from 25 per cent ten years ago.
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London has the most energy efficient properties, with around 65% rated C or above. Meanwhile, East Midlands and Yorkshire and The Humber have the least efficient properties, with just over a third rated C or above.
The data found pre-1919 properties make up nearly a third of the private rented stock and the cost to upgrade those properties to EPC band C is £10,700.
This compares to just £2,500 for a property built between 2003 and 2013.
Terraced properties make up a third of England’s private rented sector properties and will require around £7,900, on average, to improve them to an EPC ‘C’ rating.
Commenting on the figures, Dan Clinton, Head of Buy to Let at The Mortgage Works, said: ” Decarbonising and adapting the UK’s housing stock remains critical if the UK is to meet its net zero target by 2050, especially given that emissions from residential buildings account for 15% of the country’s greenhouse gas emissions.
“Labour Party Government policy requiring landlords to improve the energy efficiency of their properties forms part of these efforts. Current proposals for the minimum energy efficiency standards (MEES) will require all rental properties to meet EPC band C from 2030 (subject to a cost cap and some specific exemptions).”