February, 2022
We've all seen the headlines recently, house prices going up, the number of stock going down and for good measure Rental properties now have to meet an EPC rating of C by 2025 or face fines.
Lets' cut to the chase and say the future market is looking grey for Barnsleys landlords but sunny for future homeowners.
Approximately 70% of all privately rented properties in Barnsley and surrounding areas have an EPC rating of ‘D’ or below.
How can landlords adapt to these changes and what are we likely to see?
For most properties to achieve this higher rating it will just be a case of more insulation in the loft, walls and a new boiler. This can be achieved at a good cost with the right company and servicing.
Doncaster Property Blog stated "landlords who hold older housing stock such as terraced properties built in the 1800s." will have the most expensive task of getting that EPC rating and continued "These Victorian terraced houses never perform well on EPC ratings as they have solid walls."
Older Terraced properties make up a large portion of local rental housing and tend to not have any wall cavities. This is where the cost can dramatically increase. Without a wall cavity, insulation will have to be installed on the exterior. Externally insulating a semi-detached/End-Terrace house costs £8-10,000, whilst a mid-terrace is between £6-8,000. If the property needs new doors, windows and a boiler; you can see where decisions will be made by the owner.
Some landlords will choose to release these property assets.
For people looking to make their first step onto the property ladder and new/growing investors, this will be great!
Properties and portfolios will be coming to fruition and due to the time limit of the new regulations.
The stock shortage we are currently experiencing could start improving as these properties come to the market. The accelerating house price growth should also slow down.
Written by - Cameron Rouse
