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
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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.
Mortgages offering incentives like cashback are becoming increasingly popular to draw homebuyers in. Is this the right option? We take a look at the pros and cons.
More and more lenders now offer mortgage deals which come with incentives to attract borrowers and to differentiate themselves from the competition. Mortgage rates are currently extremely competitive, so an extra benefit or bonus is one of the only ways for a deal to stand out from the crowd.
Incentives can take several different forms. For example, lenders will require a valuation of a property to make sure it is security for the loan and worth as much as the homebuyer is paying for it. The cost of a valuation will depend on the size of the property, but typically starts from around £250, rising to about £2,500 or more for homebuyers purchasing high-end homes.
Some lenders will offer a free valuation as part of a mortgage deal, although this will usually only cover the cost of a basic valuation report rather than an extensive structural survey, which many people opt for when buying a home. Also, lenders may set a minimum purchase price and only offer free valuations on properties over that value.
Other lenders provide free legal work for those who are mortgaging, but remember to check the small print for any restrictions.
Cashback is becoming one of the most popular mortgage incentives. Lenders will pay borrowers a lump sum, typically starting from £250, when their mortgage deal completes.
The amount of cashback offered has crept up in size in recent years, with many lenders now providing cashback of around £500, although some payments can be as high as £2,500. This can be particularly appealing for first-time buyers who often put the money towards stamp duty or moving costs.
However, it’s important that homebuyers do not to base their mortgage decision on incentives alone. Deals which offer cashback or any other incentive may charge a higher interest rate than deals which don’t come with any added extras, making them more expensive overall.
It’s vital that homebuyers think carefully about how important up-front cash is compared to lower monthly payments. Could an interest rate saving outweigh any incentive in the longer term? If in doubt, homebuyers should seek professional advice on the best combination of rate, fees and incentives to suit their individual circumstances.
Need some mortgage advice? Get in touch with L&C Mortgages today.
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