From 1st April, all new rental leases and renewals of tenancies will be required to have an energy performance rating of at least E on an Energy Performance Certificate (EPC). For existing tenancies, the regulations come into force on 1st April 2020.
We wondered how much tenants are prepared to pay for energy efficiency. Properties across England and Wales let in 2017 with an energy performance rating of E achieved 3.1% more per square foot than properties let with an F or G rating. On an 800 square foot property, this equates to an average of £360 per year.
The majority of landlords are well prepared, but we calculate that around 7% of properties let in 2017 still need to be brought up to the standard required. Best prepared are London landlords where just 4.9% of properties let last year were lower than an E rating, while in the South West more than 10% of properties did not meet the standard.
At the top of the scale, properties with an A or B rating achieved, on average, 31% more per square foot than F and G rated properties in 2017. On an 800 square foot property, this equates to an average premium of £3,600 per year.
We would like to take this opportunity to thank you
for your continued support which has made 2017
such a successful year
and we look forward to working with you
in 2018 and beyond.
After months of hard work, our new website finally went live over the weekend and is looking fantastic! Why not have a good look around and see what amazing new features and information are included.
Our new banner has arrived today ready for tonight, and it looks great!! We are proudly sponsoring the Pink Wig event which is part of Falmouth Week and raises funds for vital research projects, the best care for breast cancer patients in Cornwall and a safer future for the next generation.
Remortgage – time to review
As we enter Autumn, lender focus turns to the end of year and building pipeline business for the New Year. Those that have perhaps not managed as large a volume of business as they would like will be eyeing their year end target nervously.
Not all lenders’ financial year will be the calendar year but those that are eager to get more business on the books before Christmas need to act now. As a result it’s not unusual to see lenders make a final push to attract customers.
There is often particular attention on remortgage business as that can typically be quicker to reach completion than new purchases. This year is showing no signs of bucking that trend and many lenders have been repricing their mortgage rates recently.
The market remains very competitive and cutting rates is a good way to grab the attention of borrower’s. That has also been helped by a calming in funding costs as the threat of an imminent rate hike has eased. As a result rates have dropped back after having nudged up a little in recent months.
It’s therefore a very good time for borrowers to review their mortgage and see if there could be an opportunity to cut their monthly cost. The headline interest rate is only part of the picture though and borrowers need to be sure to consider overall value.
Some of the lowest rates can carry big set up fees which can quickly erode the savings. However, most lenders will offer a variety of options with different rate/fee combinations.
In addition, many deals will come with incentives such as free valuation and legal work or a cashback to help deal with switching costs. It can therefore pay to opt for a product with a slightly higher interest rate but low set up fees.
What certainly doesn’t pay is apathy and failing to review your deal could be costly.
Guild Mortgage Service, Provided by London & Country Mortgages
YOUR HOME OR PROPERTY MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE
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