Levelling Up the United Kingdom - What this may mean for landlords

The government released its eagerly anticipated Levelling Up White Paper at the start of February.

The wide-ranging paper details various plans to change policies including the private rental sector, but with little detail on how, when or what exactly will be done. Areas such as replacing Section 21 notices, possible landlord register, and a national ‘decent homes standards’ database are all included.

While these big changes may be on the horizon, the NRLA (National Residential Landlord Association) chief executive Ben Beadle has argued that landlords would be able to adapt to most of the measures outlined, but felt that the biggest threat to landlords currently, is not the implications of the white paper, but the increase in the EPC threshold to C band from 2025.

The government has proposed that private rented properties will need to meet the C band for new tenancies by 2025 and for existing tenancies by 2028, with a cap of upto £10,000 on improvements before exemptions may be considered. Currently the cap on improvements is £3500.

Speaking to a Hamilton Fraser property podcast, he said:
“Landlords are willing to play their part, but the £10,000 cap (on improvements) is too high.”
He continued:
“If you need to do retrofit around a tenant, landlords will be availing of Section 21 before it’s phased out with one eye on that, as retrofitting with people in situ is a pain. If you evict the tenant, no investor landlord will want to buy it if they know they can’t rent it out (if the rating remains below a C band).”

We are continuously having conversations with landlords about this and you can find out more about EPCs, and the ways to improve your properties by watching our recent video with Peter Bywater from Ridgewater Energy here!