Energy efficiency benefits for all

The ongoing Energy Price Cap continues to save consumers around 30% on their energy bills. However, food price inflation and the overall cost of living is still on the rise and tenants carry the additional burden of being unable to achieve the energy-efficiency related home improvements that many homeowners are pursuing.

Further to this, landlords continue to face uncertainty in the timescales relating to enactment of the Renters Reform Bill and the implementation of the enhanced minimum EPC standards, not to mention the increasing costs associated with making significant energy improvements to properties. Is now the time to take action to improve portfolio properties, or is it better to wait and see when and how these changes develop?

Small changes make a difference

Whilst there is considerable industry commentary around the need to enhance EPC standards there is a danger that this encourages landlords to overlook the smaller efficiencies that can be achieved on a day-to-day basis. By ensuring portfolio properties are free from draughts, via the fitting of draft excluders and heavy thermal curtains, heat loss can be minimised. Providing tenants with guidance on how to best use the heating within the property can also reduce energy usage. Both considerations can contribute to tenants, or the landlord in the event bills are included, making considerable savings in energy bills.

It is in the best interests of both landlords and tenants to make properties more efficient, even in the smallest ways. Landlords achieve a more desirable rental property, reducing void periods, that may attract higher rents and increased yield. From a tenant’s perspective financial pressure from increasing energy costs is reduced, enhancing their ability to manage other increasing costs of living and potentially improving their financial stability. Furthermore, the planet benefits from the improved energy efficiency.

Opportunity for substantial enhancements

The Renters Reform Bill is going to drive further regulatory change, even if the deadline is still to be confirmed, so now is also a prime time for landlords to get ready. At CHL Mortgages we have designed a set of light refurbishment products that allow landlords to do just that.

The criteria for potential exemption from meeting the Minimum Energy Efficiency Standards for privately rented properties in England and Wales identifies the need to spend in excess of £3,500 in a single improvement as high cost. Where the cost of the cheapest recommended improvement exceeds this figure the landlord can apply for a high-cost exemption via the PRS Exemption Register. However, the requirement remains that landlords should make all possible improvements before any exemption can be considered.

Our Refurbishment range has three product options: EPC Improvement, Cosmetic Refurbishment, and Light Refurbishment. Each product is structured to enable landlords to invest in improving their properties with the reassurance of being able to release capital against the improved value to recoup improvement costs, all within the same mortgage product. This places landlords in full control of their property improvement plans, reducing both administrative and cost burden of multiple loans to maximise borrowing against increased value.

It is imperative for lenders to enable landlords to improve the energy efficiency of their properties; for the benefit of our environment, as well as meeting regulation. At CHL Mortgages we have the solutions that do just that.