Nationwide Makes Major Announcement on Energy Efficient Rentals
Nationwide has issued what it calls its "biggest" announcement, with thousands of customers set to benefit from renting energy efficient homes. The Mortgage Works, a Nationwide subsidiary, has found that the North of England attracts the highest price and rental premium for more energy efficient buy-to-let properties.
According to the research, potential value added to house prices, combined with higher rents, means that the majority of landlords in the Midlands and North are likely to recoup their initial investment within five years. The latest data from the English Housing Survey shows that 51 per cent of private rented housing stock is currently rated A to C, up from 25 per cent ten years ago.
Regional Variations in Energy Efficiency
London has the most energy efficient properties, with around 65 per cent rated C or above. In contrast, the East Midlands and Yorkshire and The Humber have the least efficient properties, with just over a third rated C or above. The data also reveals that pre-1919 properties make up nearly a third of the private rented stock, and the cost to upgrade these properties to EPC band C is £10,700. This compares to just £2,500 for a property built between 2003 and 2013.
Terraced properties account for a third of England’s private rented sector and will require around £7,900 on average to improve them to an EPC ‘C’ rating.
Government Policy and Industry Response
Commenting on the figures, Dan Clinton, Head of Buy to Let at The Mortgage Works, said: "Decarbonising and adapting the UK’s housing stock remains critical if the UK is to meet its net zero target by 2050, especially given that emissions from residential buildings account for 15% of the country’s greenhouse gas emissions."
Labour Party Government policy requiring landlords to improve the energy efficiency of their properties forms part of these efforts. Current proposals for the minimum energy efficiency standards (MEES) will require all rental properties to meet EPC band C from 2030, subject to a cost cap and some specific exemptions.
