Nearly one in five home will become unrentable
Fears have been raised that if the Government’s plans for new energy legislation proceed then nearly 17% of rental properties could become unrentable by 2018, according to data.
Those are the findings from Urban.co.uk who say that the minimum energy efficiency standards that are set to come into law next year for England and Wales could have a devastating effect on the sector.
The move will make it illegal for a landlord to rent out a property that has an energy performance certificate rating of a below E - unless it is registered as being exempt from the rules.
The firm’s Landlord Knowledge Survey questioned 4,000 landlords on a range of issues that concern them.
Many private landlords are unaware of the legislation
The data also reveals that many private landlords do not know of the legislation and that their rental property may fall into the illegal category of not meeting the minimum energy efficiency level being proposed.
The co-founder of Urban.co.uk, Adam Male, said: “One reason for the lack of knowledge in the industry could be down to the influx of new regulations in the rental market.
“Landlords are facing more changes than ever before so it's no surprise to find that many find it difficult to keep abreast but unfortunately that isn’t a defence should things go wrong.”
Indeed, landlords with a buy to let property should be taking action now to ensure their properties meet the new energy regulations and many should begin preparing to mitigate the impact of the regulations by carrying out the necessary improvements.
Access funding under the Government's ‘Green Deal’
Until last year, landlords could access funding under the Government's ‘Green Deal’ which would have helped them meet the costs for upgrading their property to the minimum standard.
Recently, Quick Move Now's managing director, Danny Luke, said: “For the new legislation to work, more thought needs to go into supporting landlords to make the necessary changes.”
New landlord registration system goes live
Meanwhile, a new digital registration system for landlords in Scotland has been launched.
The system will enable landlords to reapply for and renew their local authority registration and for people to inspect the landlords’ public register easily. Local authorities will also be able to update the register.
A spokesman for the Scottish government said: “The new system provides a more accessible service and will reduce the time needed for local authority staff to administer it which frees them up to deal with landlords who will not or do not comply with landlord registration requirements.”