Portfolio landlords are taking advantage of government proposals that could require all rental properties to have an energy performance certificate (EPC) rating of C and above.
New research from specialist landlord lender Landbay, suggest that portfolio landlords are investing in poorly-insulated homes to upgrade them and benefit from capital growth.
According to the research, seven out of 10 buy-to-let landlords knew about the proposed move to make it a legal requirement for rental homes to be EPC rated A, B or C. This awareness was strongest among portfolio landlords with 10 or more properties.
The research found that 68% of landlords owned properties rated D to G with four out of five intending to carry out improvements to achieve a C rating.
More than half (53%) of portfolio landlords said they would consider buying homes that were D rated or lower in order to bring them up to at least a C rating. Almost a third (32%) of landlords with four to 10 properties, and 20% of non-portfolio landlords said they would buy homes to upgrade.
It is expected that the government will require new tenancies to be rated C or above by 2025, with the law affecting existing tenancies by 2028.
Paul Brett of Landbay, said: “Buying properties and making them more energy efficient will raise the value of the property and the rental income landlords can charge, as well as reducing tenant’s energy bills.
“A few extra thousand pounds spent at the buying stage will be an investment for the longer term.”
Read more about this story on the Landlord Today website.