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.
House Prices Rise but Regional Gap Widens
Recent figures indicate that UK house prices are continuing to rise. Nationwide’s house price index showed that UK prices rose by 0.5% in September. That meant that the annual rate of price growth increased to 3.8%.
The Building Society’s chief economist was encouraged by the modest pick up in house price growth, noting that prices rises were stabilising and somewhat nearer to the pace of earnings growth.
However, there are many that continue to point to the imbalance between the supply of property and the strong demand from buyers. With fewer properties on the market and plenty of interest from buyers it would not come as a surprise for there to be a continued pick up in house price growth.
The UK wide price increase masks a wide range of regional growth rates. London in particular continues to see price increases far and away higher than elsewhere in the country. In fact, Nationwide figures show that the price of a typical home in the capital is now more than twice the UK average.
Far from the rocketing prices of London some areas have shown a slowdown in the annual rate of growth. To underline how different the growth rate can be depending on location a couple of areas saw a small decline in prices.
The regional variation in prices has led to the divide between prices in the North and South of England reaching a record high. The third quarter of this year saw prices in the South of England up 8% year on year whilst those in Northern England increased by just 1%. Putting that into cash terms means that the gap between average prices in the South and North of England has exceeded £150,000 for the first time.
However, most areas continued to see gains in the third quarter and with the risk that construction activity could lag behind strengthening demand there could continue to be upward pressure on house prices.
Guild Mortgage Service, Provided by London & Country Mortgages
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