08 Jun 2021
Under new legislation being considered, homeowners living in poorly insulated and draughty homes (meaning they would have a low EPC rating) could pay more for their mortgages and lose value from their homes under Government plans to prioritise mortgages on properties with high energy-efficiency ratings.
There are 12,068,075 properties in the UK with a rating of ‘D’ or below.
The Department of Business (DoB) wants to force mortgage providers to classify the energy ratings of their borrowers’ homes and put the average into a Government league table, which will be presented on the DoB’s website.
Mortgage providers will then get time sensitive targets to improve their average EPC scores, punishable by fines, meaning this would increase the mortgage costs for those with low energy efficient homes.
Back door way to get us to make our rental properties more eco friendly?
All stick and no carrot?
Add this to all the asset-stripping of rental property value by local government through their licensing and landlord-fining money making schemes SJD landlords are once again facing pressure.
The cost of brining a typical Victorian rental property up to EPC band C, which is going to to require insulation of external walls (and cannot easily be done with tenants in-situ) is going to cost in the £10,000 region. Add to that the cost of installing heat pump technology instead of gas central heating at the next boiler change and landlords are facing £20,000 plus costs over the coming years and fines in the £10,000s for every breach of regulations the council can claim against them.
No wonder that thousands of landlords are giving tenants Section 21 possession notices to give t tenants back for the council to house and selling up before the council takes 25-50% of their property value off them in fines for ‘alleged’ breaches of regulations.
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