news | 5 months ago | Jodie Bradley

Energy efficiency is a bigger priority for landlords than typical homebuyers, claim brokers

Brokers have revealed that energy efficiency isn’t a priority for housebuyers — but it’s a completely different story for landlords.


Following Ofgem’s announcement that the energy price cap for typical domestic consumption will be dropping in October 2023, UK news agency Newspage asked property experts how important energy efficiency is for people buying a new home.

While most brokers agree that regular homebuyers are not concerned about a property’s energy efficiency, some have claimed that this factor is higher on the priority list for landlords, due to the government’s proposed new EPC requirements.   

“The only clients who have ever factored this in are BTL investors looking D and above, or C and above ideally due to regulations,” said Stephen Perkins, managing director at Yellow Brick Mortgages.

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Bob Singh, founder of Chess Mortgages, added: “BTL buyers are certainly more aware and buy better stock not least due to the imminent changes in legislation to EPC ratings.

“More than ever, advisers need to have conversations about EPC ratings and make borrowers aware of what's coming.

“If we are not careful, local authorities may start slapping a ULEZ-type tax on homes with bad ratings.”

Scott Taylor-Barr, financial adviser at Barnsdale Financial Management, stated: “[The importance of energy efficiency] is hugely different for landlords who now must meet minimum EPC standards and, potentially, this may be toughened up in the future for that sector.

“This does mean that the government will at some point have to apply more pressure to improve the energy efficiency of the UK's housing stock.”

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