When it comes to buy to let, it could be argued that we have seen more changes in the last five years than the previous 20. But as the adage goes, change brings opportunity.

Most recently it was announced that all newly rented properties in England & Wales will be required to have an EPC rating of band C or above by 2025*. Some claim this change presents more challenges and cost burdens leading to landlords selling up – and a detrimental effect on the private rental sector.

At Vida, as a lending specialist who really understands the market, we see things differently. Our view is that this is good news as it gives real opportunities for brokers and landlords. Besides, people also said there would be a landlord exodus with the tax changes several years back; landlords are resilient and adaptable.

It Will Happen

As it stands, legislation is still going through and there will be more debate and consultations. There is still a bit of confusion – for example will HMOs be part of this? What about Scotland? What support will exist for landlords? What will really happen if landlords do not comply?

However, with the environmental challenges we face, let’s assume that this is going to happen and will affect virtually all buy to let properties.

Make It Happen

It was once said that there are three types of people: Those who make things happen, those who watch things happen, and those who wonder what happened.

2025 – when the EPC changes need to be implemented by – may seem a long way off, but it is important to make things happen now.

Opportunities For Brokers

Without saying the obvious, this gives a great opportunity for brokers to reach out to their landlord clients. Like you, your clients will be busy, and they may not really have fully digested all the planned changes. And they may well be thinking they can worry about this further down the line.

At Vida, our experience within the specialist market gives us the insight to know that it is vital to begin conversations with your landlord clients now. Why wait? And why wait for someone else to talk to them instead of you?

Think about any landlords you know. How big are their portfolios? Those who are classed as portfolio landlords will have the bigger challenge, naturally, as they will have more properties to address.  What about those with HMOs? They may be reading different stories suggesting they are or are not impacted. Get in touch and start to discuss solutions together with landlords, which may well mean some form of capital raising to fund required work.

Opportunities For Landlords

It is important your clients don’t wait, not least because as the 2025 deadline gets closer the availability of tradespeople will reduce and inevitably prices will rise. But moreover, tenants will want greener properties. If your clients get their properties to a C or above rating, it will make them more marketable to potential tenants and avoid void periods.

Change brings opportunity for brokers and landlords. So, make it happen and get life moving!

*Source: Government unveils levelling up plan that will transform UK – GOV.UK (www.gov.uk)

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