Private rental landlords should consider upgrading their properties now to spread the cost and avoid hikes caused by builder demand, Family Building Society suggested.
Appearing on a podcast discussion in association with Mortgage Solutions, Stuart Heavens, business development manager (BDM) at Family Building Society, said landlords would have to look at improving the quality of their portfolios.
He added that this was particularly true considering the proposed Renters’ Rights Bill and government target for rental homes to have a minimum Energy Performance Certificate (EPC) rating of C by 2030.
Heavens said: “As we approach any deadline for EPC changes, the chances are, based on supply and demand, that the supply of builders to improve properties will probably start increasing costs.
“So, it makes sense for landlords to start considering these changes now and spreading their costs over the coming years rather than leaving things to the last minute.”
Heavens also said lenders and brokers could help landlords to consider funding options in case they did not have the savings required or did not want to use them. He suggested the use of second charges, further advances or remortgaging with capital raising.
Introducing the Green Living Reward
Your clients can now get up to £2,000 cashback for making energy-efficient home
Sponsored by Halifax Intermediaries
He also recommended the mutual’s own offset buy-to-let (BTL) mortgage, which could be used to raise funds now and leave them in reserve for when a landlord is ready to spend it.
Regarding the proposals in the Renters’ Rights Bill, Neil Cadwallader, field BDM at Family Building Society, said landlords would have “to get their house in order” and this would start by making improvements to the portfolio.
Cadwallader said lenders would be there to help landlords through this.
Watch the full episode [8:02] hosted by Shekina Tuahene, commercial editor and deputy editor of Mortgage Solutions, with guests Neil Cadwallader, field BDM at Family Building Society, and Stuart Heavens, BDM at Family Building Society.
This is the third and final episode in a three-part series.
Watch the first episode here: Family BS podcast: ‘Buy-to-let market is in a lot better health than generally perceived’
Watch the second episode here: Family BS podcast: ‘Accountants have had a massive bearing on the buy-to-let market’
