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EPCs on Listed Buildings: what do landlords need to know?

Posted on by prateek

Reside’s Toby Martin dives into the puzzling world of minimum energy standards in the private rental sector, and how they apply to Listed properties.

By law, any rental property must have an energy efficiency inspection carried out in order to place the property on the rental market. The energy efficiency of the property is graded between A and G, with A being the best rating. The property’s energy efficiency is summarised in a report called an Energy Performance Certificate (EPC), which must be included in the marketing particulars and provided to any prospective tenant.

A recent law, the Minimum Energy Efficiency Standards Regulations, was introduced to prevent landlords from renting out properties with an F or G energy rating without first carrying out the improvements suggested in the EPC to increase the overall rating. The intention is for the landlord to carry out any works necessary to raise the overall score to an E rating.

The government wants to raise the minimum energy efficiency standards to EPC Band C by 2025 for new tenancies in private rented homes, and by 2028 for all tenancies. However, this legislation is yet to be finalised.

Initially, it was thought that Listed properties were exempt from the requirement of even having an EPC due to the difficulty landlords would encounter when trying to improve the property. Listed buildings regulations restrict many of the improvements that are often suggested in EPCs, such as fitting double glazing windows.

However, recent clarification made it crystal clear that all properties, including those in Listed buildings, must obtain an EPC when going on the rental market. Listed properties, mainly due to their age and limitations on energy improvements, are more likely to receive low scores, but landlords of these properties should know that it is still possible to go to the rental market, even if it is impossible to increase the energy rating to the required E rating.

Landlords of low-scoring properties must carry out the recommended improvements to increase the energy efficiency of their property, but there are certain situations in which properties can be registered as exempt from these requirements. The most relevant of these exemptions are:

  • ‘High cost’ exemption: The prohibition on letting property below an EPC rating of E does not apply if the cost of making even the cheapest recommended improvement would exceed £3,500.
  • ‘All improvements made’ exemption: Where all of the suggested energy efficiency improvements for the property have been made, or there are none that can be made, and the property remains sub-standard, an exemption from further improvements can be obtained and the property can be placed on the market.
  • ‘Consent’ exemption: If third party consent is required to carry out a suggested improvement, for example from a freeholder or local authority, and that consent cannot be obtained, an exemption can be registered.

Despite the minimum energy standards regulations, any property can be brought to the rental market – you just need to know how to navigate the EPC maze.

Reside is an award-winning independent letting agent in Bath. Please get in touch if you would like to discuss any aspect of letting or managing your property; we would love to hear from you.

Inside The Jolly’s Refurbishment

Posted on by prateek

The perfect property to rent in Bath?

Milsom Street is the beating heart of central Bath, shoppers busily flowing down the thoroughfare and its various tributaries. It is dominated on the western side by a department store which has become synonymous with the city, Jolly’s. Jolly & Son has, in one form or another, been a staple of the Bath shopping scene since 1823. Its immediate future is sadly uncertain, as current owner House of Fraser seeks to agree a new lease with the council, following a buy-out by Sports Direct.

Above Jollys’ crowded aisles, a rejuvenation of a different kind has taken place. A highly regarded Bath-based developer, Longacre, has converted ten run-down apartments into fourteen exceptional and exclusive studio, one and two bedroom apartments. Not that you would know, standing on the street – the building’s Georgian facade remains unchanged.

An Uncompromising Finish

The development is accessed by a heavy wrought iron gate, behind which lies a painstakingly restored peacock mosaic bearing the name of the department store. A large hallway with a cantilever staircase leads to a landing lined with skylights. The apartments vary in size and shape, but not in quality. Engineered timber flooring, granite kitchen counters, and stainless steel integrated appliances are universal, as are the views over the city front and back.

Secure Investments & Happy Tenants

Such a high quality of finish, paired with the most central location in the city, made for the perfect Bath property investment opportunity. Working closely with the selling agent, Knight Frank, we were able to inform our landlords of the development at an early stage, and have since brought several of the apartments to the rental market. As far as property to rent in Bath goes, these apartments are ideal: clean, contemporary, central and high quality – ultimately, very appealing to tenants.

Each apartment that came to the rental market let very swiftly – within just a few days in most cases. With tenants happy and landlords confident of a secure and reliable investment, these apartments have been a real success story.

If you are looking to expand your property portfolio and would like some expert advice, or if you simply have a property to rent in Bath, contact us on 01225 445777 or info@localhost. We would love to help.

Landlords & Tenants Endorse Bath’s Modern Makeovers

Posted on by prateek

An increasing number of contemporary new developments are being surreptitiously smuggled into Bath’s renowned Georgian architecture. Whilst a staggering 14% of buildings in Bath have listed status, well above the national average of 6%, developers have pinpointed certain areas of the city as ripe for a contemporary makeover – something that has gone down very well with both tenants and investors.

The latest addition to the city has seen Red Earth Developments rejuvenate twenty four studio, one and two bedroom apartments with allocated parking in the Lansdown area of Bath. Whilst these apartments do not reflect the traditional period splendour that one has come to expect from property in Bath, their modern and practical finishes have proved popular with tenants, especially with young professionals. At the time of writing, Reside has let six of these apartments for investment landlords, taking an average of just nine days to find each new tenant.

Reside has let apartments in several of Bath’s most recent developments such as Norfolk Court and Ladymead House, and a distinct pattern has emerged. For all the stunning architecture, high ceilings and period features that exist in Bath, there are a wealth of house hunters who are happy to eschew Georgian splendour. Some tenants, it seems, prefer contemporary comforts over classical cornices. Despite the differences between these two developments – one is a Bath Stone-clad new build with a stylish metallic upper tier, the other a Georgian building formerly used as sheltered accommodation for the elderly – they both boast stunning contemporary interiors with integrated appliances under warranty, granite work surfaces and wiring for satellite television and high-speed broadband. All of these factors make moving such an easy transition for new tenants, who have to act quickly to secure such a property. Our most recent Ladymead House apartment was bagged by a tenant before we could even begin to market it.

These new developments have also proved to be a popular way into the market for first time investors. Typically consisting of practical, stylish and high spec apartments, they are targeted towards the more affordable end of the investment property ladder, and come with long warranties which would provide any landlord, no matter how experienced, with peace of mind. At The Coachworks on London Road, Bath’s newest development, as little as £99,000 buys an investor an exclusive and modern apartment with instant access to the city centre. Based on our previous experiences with similar developments, such an apartment would come with strong tenant appeal and would be likely to let very quickly.

Bath is a city renowned worldwide for its stunning Georgian architecture, something for which many tenants specifically move to the city. For investors and certain tenants, however, contemporary and practical properties are becoming increasingly appealing.

If you are a landlord and wish to speak to us concerning your property, new or old, please do not hesitate to contact us.

Tenant Demand Set To Increase Into 2014… And Beyond

Posted on by prateek

Walk into Reside during the winter months and you may see a member of staff huddled over a paperback. You would be forgiven for thinking that they were squeezing in a quick chapter of whatever blockbuster had been left for them under the tree on Christmas morning, but it is far more likely that they will be scrutinising Rightmove’s own festive treat: the Little Blue Book. Packed full of data gleaned from Rightmove during 2013, this tiny tome concisely summarises national property trends during the past 12 months. With the help of this and a brand new report on the private rental sector published by Knight Frank, this blog reviews 2013 and speculates whether 2014 will be a year of merriment or malcontent for Landlords.

Rightmove’s report indicates that demand for rental property has increased dramatically during 2013, with this put down to potential home owners being ‘unable to clear post-2008 deposit hurdles’. However, whilst trends over the last three years have seen the supply of new rental properties to the market dwindle, 2013 has bucked this trend and for the first time in years the gap between supply and demand has diminished. New investors are being tempted to the market by improving returns and a recovery in the sales market, as evidenced by a 29% increase in buy-to-let loans during the third quarter of 2013 compared with the same period during 2012. With this in mind, it seems that 2013 has been a year of real growth for the rental market – both in supply and demand, but is this likely to continue into 2014?

New research carried out by Knight Frank suggests that the 4 million households who currently live in privately rented accommodation in the UK will increase by more than 25% by the end of 2016. Even as the housing market starts to recover and Help to Buy lends a hand to purchasers with smaller deposits, the report speculates that Help to Buy ‘is unlikely to reverse the direction of travel to the private rented sector’. Knight Frank cite a strong likelihood that the scheme may be scaled back, and also the slim chance that the full £12.5 billion in mortgage guarantees offered will be used. The report concludes that this, allied with an economy gaining momentum and creating more demand for employment and therefore rental properties in urban areas, will see the demand in rental properties continue to increase for the foreseeable future.

Knight Frank and Rightmove’s findings are borne out by our own results at Reside, where we have seen the total number of lets agreed per year increase by 53% between 2011 and 2013. We have already felt the impact of the rise in tenant demand this year, as January 2014 was our busiest start to the year ever with the number of viewings carried out during the month up by 39% compared to January 2013.

With tenant demand continuing to increase at the same time as a small resurgence in the housing market, it seems that there has never been a better time to invest in rental property. If you are considering joining the ever-increasing number of investment landlords in or around Bath, or simply wish to keep up with our lettings news, please do not hesitate to follow us on Twitter, Facebook, or Google+. Alternatively, our office contact details can be found on our Contact Us page.