A + B EPC Sale Premiums - An article that does NOT tell the whole truth episode artwork

EPISODE · Oct 31, 2024 · 8 MIN

A + B EPC Sale Premiums - An article that does NOT tell the whole truth

from The Property Nomads Podcast · host Rob Smallbone & Aaron Devoy

Rob discusses the potential benefits of green retrofitting for landlords, as highlighted in a recent article from the Evening Standard, highlighting findings from a survey by Mortgage Works, revealing that energy-efficient properties can command significant price premiums and rental boosts. However, Rob raises concerns about the lack of comprehensive data and the cost-benefit analysis of improving Energy Performance Certificate (EPC) ratings, arguing that while moving from a D to a C rating may be straightforward and cost-effective, achieving higher ratings like A or B can be challenging and expensive, often negating the financial benefits.  KEY TAKEAWAYS Improving the energy efficiency of buy-to-let properties can potentially increase property values and rental yields, with properties rated A or B attracting a price premium of approximately 10.9% compared to D-rated properties. The article discussed does not adequately address the cost-benefit analysis for landlords considering improvements to EPC ratings. For instance, the cost to upgrade from a D to a C rating may equal the premium gained from the sale. Achieving an A or B rating in older properties is challenging and often requires significant investment in improvements such as insulation and solar panels, which may not be feasible for all landlords. Many landlords may not have the financial resources to make extensive improvements, and the assumption that all landlords have substantial cash reserves is misleading. BEST MOMENTS "According to the Evening Standard, green retrofitting can improve property values and rental yields for landlords." "If you have a more energy efficient buy-to-let property, i.e. with a rating of A or B, then this could attract a price premium of 10.9%." "I would argue that getting up to a C rating is probably quite straightforward and probably quite cost-effective." "To me, the economics just do not make sense whatsoever." VALUABLE RESOURCES https://www.msn.com/en-gb/money/homeandproperty/green-retrofitting-can-improve-property-values-and-rental-yields-for-landlords/ar-AA1sqs7n?ocid=winp2fptaskbar&cvid=ee15db42cd934b45dd5087238ec4c5bc&ei=15 GET YOUR PROPERTY DEVELOPMENT FINANCE HERE: https://propertyfundingplatform.com/WharfFinancial#!/borrowerinitialregistration SOCIAL MEDIA/CONTACT US https://linktr.ee/thepropertynomadspodcast BOOKS  Property FAQs = https://amzn.to/3MWfcL4   Buy To Let: How To Get Started = https://amzn.to/3genjle   101 Top Property Tips = https://amzn.to/2NxuAQL   uk property, Investment, Property, Rent, Buy to let, Investing for beginners, Money, Tax, Renting, Landlords, strategies, invest, housing, properties, portfolio, estate agents, lettings, letting, business: https://patreon.com/tpnpodcast

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A + B EPC Sale Premiums - An article that does NOT tell the whole truth

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