By Paul Homewood
h/t Paul Kolk
As a downsizing portfolio landlord, I have what I call a “keeper list”.
These are the few properties I will keep until the day I die that will (hopefully) provide me with a pension.
The “keepers” are in a mix of locations, but they are all, bar one, Victorian. They are well-located, well-built, solid properties with good sized rooms, character features and a lovely feel. They are also popular with tenants and make really smashing homes.
But, as a landlord with two decades of experience, I really should know better. Victorian properties are built with solid walls (no cavities), they are draughty, prone to damp and have really old roofs. This means they’re expensive to maintain and also are poor performers when it comes to EPC ratings.
The problem is, I just can’t love a new-build the way I love my old Viccy places, so I’ve made peace with my decision and see the challenge of making them fit for modern day living (and better EPC ratings) as part of their charm.
Deluded? I probably am. However, I’ve made it my mission to future-proof my investments, and so that’s what I’m doing.
Well, so I thought.
At great expense, I’ve carried out internal wall insulation and upgraded the electric storage heaters in my one-bedroom Victorian flat (I’d already fitted double glazing years ago).
There’s no gas and, given it’s a flat, no way to do something fancy with solar panels or heat pumps, so I elected to purchase two high heat retention storage heaters, which cost £2,500 with the installation.
I chose these top of the range models because I was assured they would help me achieve the hallowed EPC “C” rating, which rented properties are required to have by 2030, up from the current grade “E”.
The assessor had already told me I only needed one heater to improve the score, but as I also wanted to improve the quality of a tenant’s life, I bought an extra – rather than a panel heater, which I could have done without lowering the EPC rating.
Having also installed lovely wooden flooring, I called the assessor and asked him to revisit the property. I still had a couple of years left on the old certificate, but wanted to get it done now to show potential tenants the new enhanced ratings.
Imagine my surprise when the certificate came back with a “D”, just one grade higher than it was previously.
Cue angry phone call.
“I did what you said, why have I not got a ‘C’?”
“You didn’t install 50mm insulation under the floor.”
“But it’s got floorboards, plyboard, insulated underlay and then wood flooring – surely that’s enough?”
“I’m sorry, Secret Landlord, you needed to insulate under the floor.”
“But,” I said, “I’ve been doing research on this and I worry it may rot the joists, there’s a fear it may breach the damp proof course and cause other issues.”
“They don’t care about that on the EPC.”
“So, what am I going to do?”
“I suggest you either rip up the floor and insulate, or accept the ‘D’. They’re changing the software in January, so you may be better off just doing it now.”
“Sorry, what?” I exclaimed.
“Yes, from January we have to measure all the windows, say what direction they’re facing and list the age. Electric heating will also potentially get downgraded because the new update includes heating costs and electric is more expensive to run. To be honest, I don’t understand why the Government is pushing heat pumps because having them could potentially lose you up to 11 points.”
“OK, so you’re essentially saying we’re having a window tax by the back door and the electric revolution they’re pushing is going to penalise me?”
“It’s a mess. The new tests will take double the time so the costs of an EPC will go up, I also wouldn’t be surprised if many assessors quit – loads left during the Green Deal.”
“OK,” I said, reeling from this new information. “What is it I should do?”
“Well, if you lower the ceiling by 400mm that will give you three extra points, you do have very high ceilings.”
Cue insane laughter. So insane, the assessor had to cut across my guffaws.
“But honestly, I don’t think the Government will stick to the ‘C’ grade, I think they’ll lower it to ‘D’. Also, they may drop that metric altogether as it’s measuring the wrong thing – it’s not in line with carbon reduction, and that’s what they’re trying to do.”
Dear reader, I am at an absolute loss. I have spent thousands to improve the energy rating of a property, which could get downgraded in the next software update in a few months. I’ve tried to future proof with the best of intentions, but it would appear the goal posts are moving, again.
Trying to plan ahead is impossible. Every day I read horror stories of insulation gone wrong – even for government-backed schemes. For now, as much as it pains me, I’ve decided the best course of action is to do nothing.
https://www.telegraph.co.uk/money/property/buy-to-let/spent-thousands-future-proofing-property-done-nothing-epc/
via NOT A LOT OF PEOPLE KNOW THAT
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November 8, 2024 at 03:47AM
