LANDLORD TACTIC

2023-01-21T08:00:00.0000000Z

2023-01-21T08:00:00.0000000Z

Daily Telegraph

https://dailytelegraph.pressreader.com/article/281616719489763

Property

Investors with old and draughty rental properties face huge bills to bring them up to scratch under government rules. To avoid expensive upgrades, landlords are increasingly buying up new-build homes, which are typically much more energy efficient One in eight new-builds were purchased by investors in 2022 – the highest level since 2017, according to Hamptons estate agents. This was a sixfold increase from 2021, when 2pc of new homes were bought by landlords Government proposals require newly rented properties to have an Energy Performance Certificate rating of C or above by 2025, while existing tenancies would have to be upgraded by 2028 David Fell, of Hamptons, said: “Given that 80pc to 90pc of new-build homes come with an A or B EPC rating, there’s nearly always no work required to meet the proposed requirement for a rating of C or above” He added that landlords were also driven to invest in these newbuilds in the North, chasing higher yields. Those in the North are 6.4pc on average, compared with 5.2pc on older homes in the South. Mr Fell added that the first 10 years are “fairly hands off ”, which means they can be managed farther away

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