Blog
Update for Landlords
Tuesday, June 13, 2023
The lettings market in our network area remains extremely buoyant with the number of prospective tenants far outnumbering the properties that are available. We have seen 10-15% increases in rents over the last 12 months and rents are still increasing, although at a slower rate due to affordability as many tenants cannot afford “out of kilter” rent increases on top of the current cost of living crisis.
However, with wage increases in recent months, we could again see rental values pushing upwards, supported by a lack of available properties to rent. We see the private rental sector market remaining buoyant throughout 2023 and landlords having no difficulty in letting their properties.
Currently, private rental properties must have a minimum energy efficiency rating of “E”, with exemptions for those properties where it would cost more than £3,500 to retrofit to this level, or for listed/protected properties.
From 2025, government legislation requires any newly rented properties to have a rating of “C” or above, and any existing tenancies will have until 2028 to do the same. These changes are to ensure energy-efficient homes meet the government net-zero carbon targets. It is expected that the Government will announce similar exemptions for the new enhanced level, but with the additional cost involved to go from an EPC of E to C. As yet, the government has not confirmed the exemption level and we will of course keep you fully updated.
Immense pressure is being placed on the government to reduce the required rating level to “D” and to announce as early as possible what grants will be available for landlords towards the retrofitting required to meet the new standards.
Even if (as rumoured recently) the Government delays the proposed deadline to 2028 for all rental properties, it does not leave long to find the money needed for the upgrades. There clearly needs to be more advice, guidance, and help for landlords and The Frost Partnership, along with most other agents, will continue to lobby the government in this regard.
For more information and professional lettings advice, please contact your local Frost office.
