Landlords ‘to pay higher mortgage premiums for properties below minimum EPC standard’

Landlords have been warned within the government’s Heatings and Buildings Strategy that they face having to pay ©1999 - Present | Parkmatic Publications Ltd. All rights reserved | LandlordZONE® - Landlords ‘to pay higher mortgage premiums for properties below minimum EPC standard’ | LandlordZONE.

Landlords ‘to pay higher mortgage premiums for properties below minimum EPC standard’

Landlords have been warned within the government’s Heatings and Buildings Strategy that they face having to pay higher mortgage premiums if they buy or remortgage properties that do not meet minimum EPC standards.

The proposals are part of, and run alongside, the government’s plans to make Britain ‘net zero’ by 2050.

But despite 17 million out of the nation’s 29 million homes being EPC band D or below, the government expects the scheme to be voluntary and market-based at first, using the lure of lower interest rates offered by lenders to persuade landlords and home-owners to upgrade their properties.

The scheme will have to be ambitious to succeed – the government estimates the cost of upgrading these 17 million homes to be up to £65 billion.

But if the green mortgage scheme is not successful and housing stock upgrade targets are not met then the government is proposing to make it mandatory for lenders to have all properties within their managed portfolios reach EPC Band C by 2030.

The lending market is at least beginning to respond – some lenders now have ‘green mortgages’ which offer lower interest rates for eco homes But progress has been slow.

Effectiveness

“While green mortgages are potentially a good way of encouraging the implementation of energy efficiency measures, the current low mortgage interest rates in the market are likely to reduce their effectiveness in this regard,” says a spokesperson for the National Residential Landlords Association.

“The Government’s English Housing Survey confirms that the private rented sector has the highest proportion of older dwellings of all tenures, with 32% built pre-1919.

“The cost of upgrading these properties to the highest energy efficiency ratings is significant, and the savings of a green mortgage are unlikely to be sufficient to cover this.

“What is needed in the future is a more strategic approach which recognises the specific challenges facing many landlords in the private rented sector is needed.”

also proposes to prevent new-build homes from connecting to the gas grid in England from 2025.

A recently-closed on requiring all rented properties to meet a minimum EPC band C by 2030, with an announcement expected later this year.

©1999 - Present | Parkmatic Publications Ltd. All rights reserved | LandlordZONE® - Landlords ‘to pay higher mortgage premiums for properties below minimum EPC standard’ | LandlordZONE.

Source : Landlord Zone More   

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Was this landlord right to be fined over his ‘agricultural tenancy’ repair failures?

A landlord who failed to repair his tenant’s property, arguing that it was not his responsibility under ©1999 - Present | Parkmatic Publications Ltd. All rights reserved | LandlordZONE® - Was this landlord right to be fined over his ‘agricultural tenancy’ repair failures? | LandlordZONE.

Was this landlord right to be fined over his ‘agricultural tenancy’ repair failures?

A landlord who failed to repair his tenant’s property, arguing that it was not his responsibility under an agricultural tenancy, has been fined £8,500 despite a leading property law expert questioning the veracity of his enforcement notice.

Jonathan Clough Williams-Ellis, 62, who owns Parc Glasfryn near Pwllheli and other properties, was found guilty of ignoring an improvement notice to repair damp and other issues at his 220-year-old farmhouse.

He has been fined £2,250 and ordered to pay £6,250 towards costs and a £190 victim surcharge by Caernarfon Magistrates Court.

A previous hearing heard that the businessman “buried his head in the sand” when ordered to tackle damp and other issues at his tenants.

Williams-Ellis, 62, insisted it was his tenant’s responsibility to deal with problems inside the property because they had a tenancy agreement under the Agricultural Holdings Act 1986, while he looked after the outer walls and roof.

Magistrates disagreed, saying responsibility for the property lies with the landlord regardless of any contractual arrangements.

The court heard the authority had sent out an Improvement Notice in 2019 to do the work on the five bedroom, two-storey, detached building, including repairing damp, installing a mains-operated fire alarm and other issues.

Wilful blindness

Chairman of the bench Elfed ap Gomer said Williams-Ellis had shown “wilful blindness” in not complying with the improvement notice over the damp.

However, David Smith, property solicitor at , says the landlord should have appealed the notice at a tribunal as it shouldn’t have been served on him.

He tells LandlordZONE: “It wasn’t the most appropriate penalty. The local authority should have taken the type of tenancy into account and replaced it with a Hazard Awareness Notice.”

Under an agricultural tenancy, landlords usually have to repair and maintain the outside of the property, the heating system, gas water and electricity.

They can claim compensation at the end from tenants for disrepair such as not repairing the farmhouse in line with the obligations in the agreement.

©1999 - Present | Parkmatic Publications Ltd. All rights reserved | LandlordZONE® - Was this landlord right to be fined over his ‘agricultural tenancy’ repair failures? | LandlordZONE.

Source : Landlord Zone More   

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