5 ‘must know’ facts for first-timer buyers in 2023

Getting a foot on the property ladder remains a goal for many, especially as every UK region has seen annual rental value growth, according to the latest HomeLet Rental Index.

Many may wonder whether 2023 will be a good year to make a property purchase so to steer buying novices in the right direction, here are 5 facts for 2023’s first-time buyers.

1. Mortgage interest rates have fallen…and may continue to do so
A cooling housing market and falling inflation is widely forecast to result in lower mortgage rates this year, with tracker mortgages potentially offering attractive repayments. The financial experts’ advice is to start a conversation with a lender or mortgage adviser to establish what is possible, based on personal circumstances, rather than be influenced by newspaper headlines and rumours.

2. The Government has extended its Mortgage Guarantee Scheme
In late 2022, the Government extended its Mortgage Guarantee Scheme on a UK-wide basis. Rather than end in December 2022, it now runs until December 2023. The initiative allows first-time buyers with a 5% deposit to access a greater range of mortgages. The scheme can be used to purchase homes worth up to £600,000, subject to affordability and eligibility checks.

3. House prices have stabilised
When a panel of mortgage experts were asked to deliver their verdict on prospects in 2023, they reported it could be a good year ahead for first-time buyers. One of the factors behind the positivity is the stabilisation of house prices. Runaway values that soar month-on-month will be far less frequent and, in some places, prices may even drop back slightly – increasing affordability for first-time buyers.

4. Stamp duty favours the first-time buyer
Many first-time buyers in England, Scotland and Wales will continue to pay nil or reduced stamp duty when buying their first home. Cuts made to stamp duty thresholds in England in 2022 will stay in place until 31st March 2025. First-Time Buyers’ Relief has increased to £425,000, meaning purchases below this value will not incur a penny of stamp duty. The maximum property value that is eligible for First-Time Buyers’ Relief has also increased, from £500,000 to £625,000. This means the remainder of a first-time buyers’ purchase between £425,000 and £625,000 will be taxed at 5%.

In Scotland, Land and Buildings Transaction Tax (LBTT) also favours property novices. A special relief for first-time buyers is available, with properties bought for £175,000 or less attracting nil tax. There is no first-time buyer tax relief in Wales but Land Transaction Tax (LTT) only applies to properties bought for more than £225,000 .

5. The LISA scheme makes saving for a deposit easier
First-time buyers aged between 18 and 40 can open a long-term savings product called a Lifetime ISA (LISA), exclusively designed to help save for a deposit. The scheme sees the Government ‘top up’ money saved – with a 25% bonus up to a value of £1,000 per year. For example, £800 put in a LISA over 12 months will be topped up by £200, resulting in a savings pot of £1,000.

Savers can add £4,000 every year to the account and when two first-time buyers are purchasing a property together, they can combine their LISA-saved deposit. There are some restrictions attached to a LISA, however. These include the buyer purchasing a property costing £450,000 or less and using a mortgage to fund the purchase.

If you are a first-time buyer and would like more moving advice, along with a selection of properties for sale, contact our estate agents today.

Could pets be the key to successful lets in 2023?

Discussing lets with pets in January is very apt. Chinese New Year falls on the 22nd of the month – traditionally celebrated by assigning one of 12 animals to another year (it’s the rabbit in 2023).

The year ahead could be monumental for landlords and tenants. It’s widely accepted that the Government’s A Fairer Private Rented Sector white paper will be adopted before the end of 2023 – and that means renting with a pet will be made easier.

Reluctance to rent to pet owners

Research indicates that private tenants are animal lovers living in a pet-reluctant rental sector. The results of a 2022 survey by the Tenancy Deposit Scheme Charitable Foundation found 38.6% of tenants had a pet in their rental property, but only 47.9% of tenants admitted to being allowed a pet as part of their tenancy agreement.

The anti-pet sentiment is reflected on the other side of the lettings equation as well. The English Private Landlord Survey 2021 – the most recent published by the Government – found that 45% of landlords were unwilling to let to tenants with pets.

Pets force tenants to move

With such statistics in evidence, it comes as no surprise that renters are willing to move home in order to live with a cat or dog. The Deposit Protection Service undertook its own research on the matter of lets with pets. When questioned in 2022, 30% of renters who moved property between October 2021 and March 2022 had done so to specifically accommodate a pet. For comparison, only 7% of renters cited pets as the most significant influence over their decision to move in 2021.

Tenants leaving one rental property in search of a pet-friendly alternative is something landlords need to consider in 2023. Finding new tenants involves time and money – check out, check in, inventories, referencing and potential void periods, so keeping happy tenants in place – perhaps even those with pets – is sensible.

Domestic animals, damage & a different approach

A major pet deterrent among the landlord community, however, has been damage caused by animals but it’s actually a bit of an urban myth. Steve Harriott, the CEO at the Tenancy Deposit Scheme has publicly said it doesn’t see a lot of disputes involving pets specifically.

Persistent reluctance surrounding pets may be forcibly eradicated anyway. The adoption of A Fairer Private Rented Sector white paper will correct much of the negativity surrounding tenants with domestic animals.

Pet-specific details in the Government’s white paper include:-

  • Legislation that ensures landlords do not unreasonably withhold consent when a tenant requests to have a pet in their home’
  • The right for tenants to challenge landlords who refuse to let with a pet
  • An amendment to the Tenant Fees Act 2019 to include pet insurance as a permitted payment, which should offset potential pet damage

The changes detailed in the white paper are a step up from the Government’s current stance on lets with pets. In 2021, it altered its Model Tenancy Agreement to say: “landlords will no longer be able to issue blanket bans on pets. Instead, consent for pets will be the default position, and landlords will have to object in writing within 28 days of a written pet request from a tenant and provide a good reason.”

For now, the Government’s Model Tenancy Agreement isn’t mandatory when agreeing a new let. Landlords are free to adapt what is suggested or create a bespoke tenancy agreement, which we suggest should always be done in tandem with a professional letting agent. We are monitoring the introduction of the white paper and will report any specific details that clarify whether landlords will retain the right to refuse tenants with pets.

Our lettings team frequently receives requests from cat and dog owners. Please get in touch if you have a pet-friendly property to list.

January Property Market Analysis

Historically speaking, the property market is cyclical with familiar, repeating patterns – and moving into an anticipated new phase was particularly evident in December. While there was a traditional and circumstantial pause in the sales market – thanks to Christmas and a recovering mortgage market – the lettings sector powered ahead.

Even in sales, there was a shift in dynamics. The end of 2022 saw us move firmly into a buyers’ market, with more homes for sale and tempered asking prices. Here’s where the ebb and flow leaves us as we enter 2023.

What’s gone up?

Sale stock is slowly improving. Figures released by Propertymark revealed the average number of homes for sale per members’ branch is now 33. This has risen from 30 and is creeping upwards towards the pre-pandemic average of 38 per branch (an average noted between 2015 and 2019).

Number of mortgage products rise

The mortgage market ended the year firmly in a recovery phase. As well as improving mortgage rates (more on that later), there is more choice. As of December 2022, borrowers had access to around 4,000 mortgage deals. This was up significantly from the autumn, when the Mini Budget caused product numbers to plummet to 2,560.

Rents have continued their upward trajectory too. The latest HomeLet Rental Index found that rents across the UK ended 2022 on a more expensive note. A new average rent of £1,175 is 0.3% more expensive than seen in the previous four week period.

This latest rent rise caps a year of ever-increasing rents in the UK. Research by Ocasa found the average rent price increased by 10.8% between Christmas 2021 and Christmas 2022. This was a jump from £1,060 per month to £1,175.

Staying with lettings, Scottish buy-to-let purchasers will notice their tax bill has gone up. On 16th December 2022, the Additional Dwelling Supplement – a tax on second homes that is part of Land and Buildings Transaction Tax – rose. The new rate is 6% – up from 4%.

So what’s falling? With the pandemic’s property frenzy over, normality resumes and prices are beginning to adjust. Figures from Rightmove showed that in December, the average price of a property coming to market fell by 2.1% – that’s £7,862 less.

Still 7 buyers for every property

News from Propertymark also suggests that the unsustainable sales market seen in Covid times has fizzled out – but demand hasn’t totally disappeared. While earlier in 2022 there were 11 buyers for every new property coming to market, this number has fallen. According to its report released in December, Propertymark’s members said they had seven buyers per property at each of their branches.

Sometimes figures rise and fall at the same time, and this can be said of future rental values. Zoopla’s rental market forecast for 2023 suggests the cost of renting a property will continue to go up. The portal does say that the rate at which rental values will increase is due to come down. To illustrate – rents rose by an average of 12% in 2022, while they’re expected to rise by 5% in 2023.

Fixed-rate mortgage costs fall

Although the Bank of England used its December announcement to raise the interest rate to 3.5%, it didn’t have an effect on new fixed-rate mortgages. In fact, the cost of taking out a fixed-rate mortgage fell at the end of 2022. When compared to rates in October, the month of December offered cheaper borrowing.

According to a report in Forbes Advisor, the average cost of two, three- and five-year fixed rate mortgage deals across all deposit levels fell in December. Rates at 5.30%, 5.28% and 5.03%, respectively, compared favourably to highs of more than 6.50% in October. The most competitive fixed-rate mortgages are now under 4.7%.

If you would like to know more about your local property market, please get in touch

Your property fraud questions answered

Property fraud was in the press recently, after a tenant tried to sell his landlord’s property using fake documents and a fabricated estate agency. Thankfully, incidents like this are extremely uncommon, thanks to legitimate estate agents like us, legal protocols and a robust conveyancing system.

Still, a degree of home mover diligence is sensible and the answers to these commonly-asked questions will help you reduce the risk of encountering property frauds and fakes.

Q. Can my house be sold without my knowledge?
A. It is exceptionally rare for this to happen, and such a sale is usually rumbled by agents and solicitors before it reaches completion. Although vacant, let and mortgage-free properties are most susceptible to fraudulent activity, all homeowners should be aware of identity theft. This is when criminals change their name by deed poll to match that of the homeowner and use fraudulent ID to move home and secure a mortgage.

Q. How can I prevent someone from selling my home without my knowledge?
A. There are a number of protective measures open to homeowners. We recommend contacting the Land Registry to ensure three things are in place: your property is registered with them; an alert is set up that notifies you if someone tries to change the ownership of the property or refinance it; and that there is an anti-fraud title restriction on the property, which means a solicitor has to confirm the person selling the property is the registered owner.

Q. How do I know if a buyer is legitimate?
A. There are a number of identity and authenticity checks an estate agent is obliged to make, which will ensure any buyer put forward is genuine, to the best of the agent’s knowledge. In addition, the conveyancers involved and the seller’s mortgage lender will make additional checks, especially concerning financial security and identity.

Q. How will I know if a property for sale is genuine?
A. Fake properties for sale are extremely few and far between but you can protect yourself by always purchasing through a reputable estate agent. Never deal directly with a seller who is advertising on a selling site, such as Facebay or Gumtree, as you’ll have little – or no – protection or right to compensation. Private sellers are not allowed to list a property on Zoopla, Rightmove or OnTheMarket so if the property for sale isn’t on one of the leading portals, question why.

Q. How will I know if an estate agent is genuine?
A. Fake estate agencies are even rarer than fake property sales but it’s still wise to validate any agency you are dealing with. Check if the estate agent has the vitals first: a landline contact number, a website, any online reviews and a willingness to meet at their office.

Next, check their accreditations. Reputable estate agents will be able to prove their membership or affiliation to one – or a number – of these bodies, such as Client Money Protect; The Property Ombudsman; The Property Redress Scheme; the Information Commissioner’s Office; Propertymark; SafeAgent; UK Association of Letting Agents and/or The National Approved Letting Scheme.

Q. What role do estate agents play in preventing property fraud?
A. Estate agents play a pivotal role in protecting buyers, sellers and landlords, carrying out identity and background checks. Among those are ‘know your client’ anti-money laundering checks to make sure the money someone is using to buy a property comes from a legitimate source. Agents also have a legal duty to carry out ‘due diligence’, which involves asking to see photo ID and proof of address of those buying and selling a property.

Q. I have been refused access to view a property, should I be worried?
A. Some sellers will protect their privacy and limit viewings but a complete refusal for an in-person viewing is worrying. Other red flags include only being able to view a virtual tour, no photos of the property’s inside or denying a surveyor access. Sometimes there is a plausible reason for this but an estate agent will give you the full and accurate picture.

Q. How can I choose a reputable solicitor?
A. A diligent solicitor will be alert for fraudulent activity so it pays to have the best legal representative in place – one who will thoroughly investigate title deeds and ownership details. Personal recommendations are always a good place to start when appointing a company, and we can provide a list of legal firms we trust. You can also check the validity of a conveyancer or solicitor with the Council for Licensed Conveyancers or the Law Society, respectively.

We are here to act as a layer of protection when moving home. Our training means we are able to spot fraudulent activity and often ‘feel’ when a party may be operating unethically. If you’d like to know what anti-fraud measures we have in place, please get in touch.

Red alert! The magenta colour trend for 2023

Is red a colour you’ve always shied away from in the home? It’s certainly not a neutral or a shy, retiring colour but red can bring warmth and depth to any interior – you just need to know which shade to choose and where to apply it.

The people at Pantone have recently released their colour of the year for 2023 and they plumped for a red called Viva Magenta. It’s a shade Pantone calls ‘brave, fearless, empowering and joyous’.

So, what makes this red more suitable for the home than other hues? Viva Magenta is nothing like the primary red we see on post boxes and fire engines. It’s not as brash or as vibrant but is more earthy and soft, thanks to being inspired by the natural dye, cochineal. And instead of blue undertones, which can make a red feel cold, Viva Magenta is rooted in deep pinks and warm purples, which add richness and a touch of luxury.

This framed artwork is the most literal way of introducing Viva Magenta into your home. Featuring Pantone’s iconic swatch design and coloured-blocked with 2023’s chosen shade, it would look great hung on a white wall or, if hanging pictures is an issue, prop it up on a mantlepiece for an instant no-drill interior addition.

There are some stunning wallpapers in the Viva Magenta colour palette and while they can be applied to a wall to create a feature focal point, wallpaper can also be stuck to furniture to add a dash of colour and revamp a tired looking chest of drawers, for example. Look for ‘peel and stick’ wallpapers that are easy to cut and attach.

Accessories are a quick route to red in your home, so why not try a beanbag? They’ve had a chic upgrade thanks to the use of grown-up fabrics, shapes and colours, including dark, sophisticated shades. Finished in a plush velvet and available in a deep magenta colour, this Isabelle & Max beanbag will bring a luxe look to any home. As an added bonus, it comes pre-filled with a removable, washable cover.

Viva Magenta and velvet fabric are such a good pairing that there’s a wealth of options to choose from.  If you have wooden dining chairs and want to add a layer of comfort, these velvet quilted seat pads in the temptingly named shade ‘merlot’ will be loved by everyone who sits down to dinner.

Inspired by another type of French wine is this four-seater sofa. Its Chesterfield styling, scrolled arms and button back are enhanced when upholstered in the decadent ‘bordeaux’ velvet fabric – a red that’s undercut by shades of juicy blackcurrants and ripe raspberries.

Finally, and sticking to the boozy theme, John Lewis has a collection of different size Egyptian cotton towels available in a colour it calls ‘claret’. You’ll elevate any bathroom by adding a neatly folded stack of these plush towels and the colour will ‘pop’ when it sits next to white sanitaryware.

If you would like to discuss your décor and gain some interior design styling tips ahead of a house move, please contact our team.

FAQs: I’m a tenant, how can I reduce my energy bills?

December has arrived, and among the early Christmas cards and party invitations was an alert from the Met Office. Our first Level 3 warning for severe cold weather and icy conditions across the UK reminded us just how bitter winter can be.

Usually, we would reach for the thermostat and turn up the temperature to beat the chill. Amidst an energy crisis, however, we are, instead, wearing extra layers and using the heating more sparingly. It’s not just gas unit prices that are more expensive this winter. Electricity is proving costly too, with many of us finding a new-found level of frugality when it comes to leaving lights on and unplugging appliances.

In terms of rented properties, we are often asked how tenants can keep their fuel bills down. As well as recommending the advice of the Energy Saving Trust, we thought it would be useful to share the answers to our most frequently asked energy questions:-

Can I install a smart energy meter?

A smart energy meter is one of the best ways of managing how much energy you use but tenants are often unsure whether they need the landlord’s permission to install one. If you pay for your own energy, you are free to request a smart energy meter.

It is, however, advisable to let the landlord know your intention as there may be restrictions on the type of meter that can be installed and the energy that is supplied to the property. Contact us if you would like a smart energy meter and we can liaise with the landlord on your behalf.

Can I change my energy supplier?

It’s hoped that 2023 will bring some new, cheaper energy deals worth switching to, so knowing if you can change suppliers is crucial to cost saving. Unless you are on a ‘bills included’ rental package – where your landlord pays the property’s gas and electricity bill – tenants can switch suppliers as they wish.

You’ll know if you pay the bill as it will be your name and address on the account. If you’re still unsure, feel free to ask us and we’ll check your tenancy agreement. We’ll also confirm whether the landlord may have a ‘preferred supplier’.

Can I get paid to use energy at night?

Many tenants are asking us about this initiative, which has been tested but isn’t live yet. The National Grid plan to give people a discount on their bill if they switch to using electricity at off-peak times, taking pressure off the network. Renters wanting to benefit from this scheme, if and when it goes live, should contact their electricity supplier and ask to register for the Demand Flexibility Service.

Can I demand my landlord make energy saving changes?

Although tenants can’t insist their landlord make energy saving changes, minimum EPC standards were introduced in the UK to ensure every private rental sector property meets minimum energy efficiency standards. This makes many tenanted homes cheaper to power and heat than those in the owner-occupier market.

Can I, as a tenant, make my own energy saving changes?

Tenants in England and Wales can request to make their own energy saving changes to a rented property – at their own cost – as detailed in Part Two of the Energy Efficiency (Private Rented Property) (England and Wales) Regulations 2015.<
The document states: ‘The tenants’ energy efficiency improvements provisions mean that, subject to certain requirements and exemptions, from 1st April 2016, where a tenant requests their landlord’s consent to making energy efficiency improvements to the landlord’s property, the landlord may not unreasonably refuse consent.’

In Scotland, the Housing (Scotland) Act 2006 (Part 1, Chapter 7, Section 52) gives every private sector tenant ‘the rights to carry out work, either to make the house suitable for the accommodation, welfare or employment of any disabled person who occupies it as his or her only or main home, or relating to the installation of central heating and other energy efficiency measures under the Executive’s central heating programme or similar schemes promoted under the same powers. The exercise of this right requires the consent of the landlord, which must not be withheld except on reasonable grounds.’

If you’re a tenant with an energy efficiency question that’s not answered above, please contact our lettings team for advice.

Property positives & negatives: what puts buyers off?

For many, selling up represents a decision to leave a property that the owner has invested time and money into making it a home. Others, however, may have fallen out of love with where they live, letting it get a little ‘rough around the edges.’

Like or loathe your current home, it’s not the opinion of the seller that counts. As soon as that ‘for sale’ sign is up, all that matters is what buyers think about the property and how much they’re willing to pay to make it theirs.

New research from Tapi was commissioned to establish the top five negatives that put potential purchasers off. It’s a study that has been carried out numerous times by different people but after the last two years and many people making lifestyle changes, it’s good to get a fresh perspective on what may scupper a property sale.

The research found a home that needed a lot of work doing to it was the most off-putting aspect, with 45% of those taking part in the research saying they’d pass on a property if it needed too much modernising or maintenance.

On a similar theme, 22% of participants commented that they’d discount a property that needed complete redecoration, while 28% would be deterred if the home had an old kitchen that needed replacing.

The other two aspects in the top five property negatives really fall outside of the seller’s control. Purchasers value their peace and quiet, with 43% of respondents saying they’d snub a property if there was a lot of external noise pollution. Completing the list was unsightly surroundings in eye view of the property – a negative cited by 36% of people.

Rather than dwelling exclusively on the adverse, the study also asked what people found most attractive when looking for a new home. Unsurprisingly, more than half of Brits (52%) said private outdoor space was the most important factor when searching for a new home.

Just behind a garden or a balcony was a new kitchen, with 51% saying this was a top consideration when looking for a property to buy. Another feature that finds favour with home movers is a new bathroom, with 42% of respondents saying this was very important to them. Other property plus points included freshly painted walls (20%), new flooring (15%), modern appliances (12%) and neutral colours (19%).

Before you rush out to buy a new kitchen or rip out your bathroom, talk to us about the financial investment needed to make improvements versus the actual value and appeal it will add to your property. Sometimes the simplest (and cheapest) alterations, such as tidying the garden and repainting throughout in white, can make all the difference. Contact us for free advice and a property valuation.

June’s property market analysis

We’re almost halfway through 2022 and there is time to reflect on the current property market. Although the interest rate has risen, the impact has yet to hit buyer demand, with buyer numbers still high. Estate agents participating in Propertymark’s latest study reported an average of 100 purchasers registered per branch.

There is, however, a contrast between buyer demand and the number of properties for sale. This recurring theme was illustrated in the same Propertymark study. It found there were 52% fewer properties available in April 2022 compared to the same month in the previous nine years.

Sellers shelling-out over the asking price

Competition between buyers remains fierce – an aspect that should encourage sellers to come to market. As a result of demand, purchasers are willing to bid high to secure a property. In fact, 39% of agents say the majority of their stock sold above asking price.

House prices continue to rise

Rather than a cooling market that property commentators had predicted, the rate at which house prices are climbing accelerated in May. Previously, growth had shown signs of slowing, dropping to 0.3% in April from 1.1% in March.

May, however, saw the growth rate of price rises bounce back. The Nationwide detailed a 0.9% uplift in property values – the tenth month in a row where values had increased. Annual price growth now stands at 11.2%.

Rising property values have also led to a new property record. In May, Zoopla’s house price index revealed the UK’s average house price had topped £250,000 for the first time. Demand that’s 61% over the five-year average and a 37% dip in the number of homes for sale have combined with a willingness to pay over the asking price to create a new average house price of £250,200.

The residential side of agency isn’t the only place to have experienced increases. Goodlord’s May rental index shows that rents rose by 0.83% in May. This results in English tenants paying a new average monthly rent of £1,020. Rents are now 11% more expensive when compared to a year ago.

Potential buyers have two pieces of news to digest this month. The Government stunned the property industry by announcing a change to its Help to Buy scheme. The Government has brought this deadline forward, with Help to Buy purchasers needing to reserve a property before 6pm on 31st October 2022 It had been advertised that reservations needed to be made by December 2022.

There are successors to Help to Buy

The earlier reservation deadline will ensure all sales legally exchange before Help to Buy ends in March 2023. Anyone hoping to buy a new home using the scheme – which allows purchasers to buy a property with a 5% deposit – should not delay their property search. Alternatives still running after Help to Buy ends include the Government-backed mortgage guarantee scheme, shared ownership and First Homes.

Those who are buying a property in the near future are being advised to pay particular attention to their circumstance. A new poll among 940 estate agents looked into who was to blame for sales falling through. Respondents said 46% of collapsed sales were due to problems on the buyer’s side, with 22% saying purchasers further up or down the chain caused issues.

Fallthrough rates remain low

Conveyancers and solicitors, however, didn’t escape the wrath of estate agents. Of those questioned, 17% found it was the legal teams who were behind transactions that failed to complete. Thankfully fallthrough rates are low. Almost 3 out of 4 agents taking part in the research (70%) said fewer than 9% of their sales fell through.

The property sector loves a study and the latest English Private Landlord Survey found 90% of landlords plan to keep renting out their buy-to-lets after their current tenancy agreement expires. When it comes to adding properties to their portfolios, 11% of landlords said they plan to purchase additional buy-to-let.

If you would like to know more about your local property market, please get in touch.

5 things landlords should know about green mortgages

From what was a leftfield way of thinking to a mainstream, everyday goal, going green is an agenda-topping issue in lettings. Green mortgages can help landlords reduce three vital aspects – carbon emissions, fuel bills and mortgage repayments – by incentivising the purchase of the most eco-friendly homes and encouraging the upgrade of the least energy efficient rental stock.

Here are five green mortgage must-knows:-

  1.     Landlords can apply now

Green mortgages, with their more attractive interest rates and borrowing terms, aren’t reserved exclusively for those buying a property to live in themselves. In fact, 15% of the buy-to-let home loan market is devoted to green mortgages, with product numbers at their highest ever level (there were more than 350 green buy-to-let mortgages available as of April 2022).

  1.     The property you’re buying should have a top-end EPC

Green mortgages are offered to buy-to-let investors who are purchasing the most energy efficient properties to rent out. To qualify, there should be an EPC with a rating of A, B or C. It is a legal requirement for every property for sale to have a valid EPC but if you’re in any doubt about the eco performance of any property you want to invest in, please ask us for advice.

  1.     Alternatively, you should be committed to making eco improvements

There is good news for investors who have found a high yielding property that happens to have an EPC of D or below. Some green buy-to-let mortgages are aimed specifically at investors willing to install upgrades to improve the home’s EPC rating. These incentives come in the form of cashback that can be spent on improvements, or a bridging loan that can be converted into a buy-to-let mortgage after work to improve the EPC rating is complete.

  1.     Now is a good time to take out a green mortgage

Whether you are making your first property investment, remortgaging a buy-to-let in your portfolio or are adding something new to your rental collection, considering a green mortgage now is a wise move. With the interest rate creeping up, any home loan that offers an advantage makes business sense, especially if it encourages landlords to install energy efficiency measures.

  1.     Green mortgages & EPC changes go hand-in-hand

The timing of green mortgages is critical, given the EPC changes that lie ahead. Landlords should be preparing now for 2025, when all new and renewing tenancies need to have a C EPC rating. This new standard will also apply to existing tenancies from 2028, and the mandatory expectation may even rise to a B by 2030.

Get in touch if you’re going green

Green mortgages should be the incentive you need to start making energy efficiency changes to a buy-to-let you own or intend to buy. From attractive interest rates and cashback to larger loan amounts to cover eco improvements, what’s not to like? We can help with planning and managing a more sustainable buy-to-let, so contact us today.

The eco improvements that add the most value

If there’s one agenda that won’t be pushed to the bottom of the pile, it’s the eco agenda. How much energy we use, where we get our energy from and what we can do to reduce our carbon footprint is a narrative that has become persistent in the property market.

While most of us acknowledge that building and running homes contributes to harmful emissions (it’s estimated that 40% of the UK’s carbon is emitted by households), the type of improvements that make the most positive contribution to a greener planet are sometimes the most intrusive – and expensive.

So where does this leave the homeowner who wants to improve their eco credentials but has potential plans to move in the near future?

The good news is adding energy efficiency measures may increase the value of your property and make your home more desirable to buyers when it comes to selling – on top of any gas and electricity savings you make while living in the property once any changes are made.

Which eco improvements add the most value? 

Rated People helpfully ranked 15 of the most common energy efficient home improvements in order of how much value they add to a property, as follows:

  1.     Solar panels – £13,512 (value increase)
  2.     Wind turbine – £12,941
  3.     Triple glazing – £12,788
  4.     Underfloor heating – £12,290
  5.     Ground source heat pump – £12,251
  6.     Double glazing – £12,005
  7.     Extra insulation, like cavity wall insulation – £11,764
  8.     Biomass boiler – £11,756
  9.     Air source heat pump – £11,670
  10.     Solar water heating – £11,646
  11.     Electric car charging point – £11,538
  12.     Green/living roof – £11,477
  13.     Biodiverse garden – £11,444
  14.     Old appliances replaced with new ones – £11,190
  15.     Draught proofing – £11,151

How much do the most popular eco improvements cost?

Air source heat pump: expect to pay in the region of £10,000 for the purchase and installation of an air source heat pump. This cost can be reduced significantly if homeowners act quickly. The ‘first come, first served’ Boiler Upgrade Scheme offered by the Government will reduce the bill by £5,000 and there’s zero VAT on the purchase of heat pumps until 2027. 

Verdict: you may just about break even when balancing added value with purchase/install costs but if you take advantage of the Boiler Upgrade Scheme and zero VAT, you’ll potentially add £5,000 in value.

Solar panels: figures will vary according to the size and type of your property, along with the model you opt for. As a general guide, the supply and installation of solar panels will set you back around £5,000–£10,000, although the purchase of the panels will be VAT free for the next five years. 

Verdict: install solar panels in the next five years to take advantage of zero VAT and this installation could add in the region of £5,000 to your home’s value.

Electric vehicle charging point: expect to pay anywhere between £800-£1,100 to buy and install an electric vehicle charging point at a domestic property. If you’re a homeowner who lives in a flat, you’ll be able to apply for the Government’s new ChargePoint grant, which offers a 75% discount on the cost of purchasing and installing a charging point, up to the value of £350.

Verdict: installing an electric vehicle charging point is by far the most lucrative eco improvement. An outlay of around £1,000 could see you add another £10,000 in value to your property.

If you are thinking of selling a property you own, contact the team for advice and a free valuation.