In the realm of property ownership, maximising your landlord property portfolio is vital for increasing property value and sustainability – and high EPC ratings help with just that. In this blog, we explore how EPC ratings can serve as a key to unlocking the full potential of your property investments.
An EPC rating, or Energy Performance Certificate rating, serves as a crucial indicator of a property’s energy efficiency, ranging from band A (most efficient) to band G (least efficient). This rating is valid over a ten-year period from the date of issue. A lower EPC rating often translates to higher heating and electricity bills, reflecting inefficiencies in the property such as poor insulation.
With the current average EPC rating in the UK being a band D, there is still significant room for property owners to enhance carbon reduction efforts within homes.
1 | Boosted property value
Current research shows that there is a correlation between improved EPC ratings and enhanced property values. For example, in the Rightmove Greener Homes Report, properties that increased their EPC rating from an F to an C saw a 15% increase in value. A property burdened with inefficient heating systems and inadequate insulation may also deter future prospective buyers, negatively affecting its market value. Elevating your EPC ratings not only reduces running costs but also increases the desirability and potential price tag of the property.
2 | Mortgage advantages
The surge in Green Buy-to-Let (BTL) mortgages presents an enticing opportunity for landlords. These mortgages often offer higher borrowing limits and more favourable interest rates, incentivising landlords to invest in energy efficient upgrades that increase their properties’ EPC ratings.
3 | Financial incentives for tenants
A high EPC rating can serve as a compelling selling point for landlords, as tenants could be willing to pay premium rents for energy efficient properties. With the assurance of lower energy bills, tenants could be more likely to view your property as better value for money – translating to increased rental yields for landlords.
4 | Tenant satisfaction
Beyond financial gains, high EPC ratings foster improved tenant satisfaction and reduce the likelihood of complaints. Energy efficient properties offer enhanced comfort and lower utility expenses, contributing to positive tenant experiences.
At Digital Buildings, we offer a comprehensive solution tailored to landlords seeking to maximise their property investments through improved EPC ratings and building performance. Our Home Retrofit App is a powerful tool to provide landlords with individualised energy efficiency plans to increase the asset value of their portfolio.
Step 1 – Digital home replica
After creating an account, our RetroPlanner is able to create a digital, interactive replica of the properties in your portfolio. All you need to supply is the property address. We do the rest for you by accessing the EPC database and a dozen other publicly available sources.
Step 2 – Retrofit pathways
The RetroPlanner has three main pathways to choose from: Reduce Cost, Improve EPC and Upgrade Equipment. Based on your preferred pathway, an energy efficiency plan will be automatically generated. You can change your pathway or create multiple different pathways for a property at any time.
Step 3 – Choose your measures
Your home model is completely interactive, so Landlords can swap and change different elements of their homes to create a plan that is right for them. This shows which measures have the greatest impact on energy demand and provide the best financial return.
Step 4 – Submission
After you have decided on the plan you would like to take, our qualified home retrofit coordinators will review it after submission. We will then reach out to discuss the proposed measures, sustainability factors and the benefits of appointing one of our vetted and supervised TrustMark registered assessors and contractors to perform the work.
Elevating EPC ratings not only yields financial benefits for landlords but also contributes to environmental sustainability and tenant satisfaction. With the right tools and strategies in place, landlords can harness the potential of energy efficient upgrades to enhance property value and optimise their rental return. Let Digital Buildings help you kick-start your retrofit journey. For more information, click here.