Now with upcoming UK legislation, many buy-to-let investors are considering green credentials of properties, alongside rental yields and opportunity for capital growth. The UK government has a target to reduce greenhouse gas emissions to net zero by 2050. Improving the energy efficiency of housing will play an important part in achieving this. It is possible that further increased minimum EPC ratings for properties in the private rented sector in the coming years could occur. Currently, all privately rented properties need to achieve a grade E or higher. We have a block of flats in which received a grant in order to put in gas. This raised our EPC ratings and the tenants are delighted. More so with our social housing projects that are on long 5 and 10 year govt backed leases, this is also an issue. We go through so many inspections, this is one of them. However it is worth it as we do not have to manage the tenants nor do we have voids. It lets us focus on finding properties, refurbishing them, having them tenanted with social tenants and cash flow.
There is even interest for green mortgages and amongst buy-to-let investors interest has increased sixfold. And as this interest has been on the up, more lenders have been launching mortgage deals for energy efficient properties.
Times are a changing.