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.
Ten-year fixed rates
There has been good news for borrowers over recent weeks, as lenders have responded to falling funding costs by launching some record-low 10 year fixed rates.
Products that lock borrowers in for that length of time have not always proved popular, but the gap in margin between interest rates for 5 and 10 year deals has reduced significantly.
Certainly the prospect of protecting your mortgage payments for the next 10 years at a record low rate will be attractive to many, particularly in such uncertain times.
Borrowers need to be aware however that the majority of long term deals carry Early Repayment Charges for the length of the fixed period.
It is important therefore to consider any changes in circumstances that could occur over the next decade, and whether more flexibility is needed.
This type of deal is not suitable for everyone, but for the right person it could provide peace of mind for the foreseeable future.
Guild Mortgage Service, Provided by London & Country Mortgages
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