Opportunity knocks for BTL landlords
Regarding buy-to-let, it could be argued that we have seen more changes in the last five years than in the previous twenty. But as the adage goes, change brings opportunity.
Most recently, it was announced that all newly rented properties in England and 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.
As a lending specialist who really understands the market, Vida sees things differently. We view this as 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 being considered, 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, given 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—the deadline for implementing the EPC changes—may seem a long way off, but it is important to make things happen now.
Opportunities For Brokers
Without saying the obvious, this is a great opportunity for brokers to reach out to their landlord clients. Like you, your clients will be busy, and they may not have fully digested all the planned changes. They may well be thinking they can worry about this further down the line.
At Vida, our experience within the specialist market gives us insight into the importance of beginning conversations with 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. Contact and discuss solutions with landlords, which may mean some form of capital raising to fund the 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. Tenants will also 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)