Thousands of private homes could be unrentable

MORE than seven per cent of properties currently available on the rental market in the West Midlands could become unrentable by 2018 if rules governing their green credentials come into force, according to new data.

From April 1, 2018, planned new legislation would make it unlawful to rent a property with a poor energy efficiency rating.

Properties are currently graded from A to G depending on how ener- gy efficient they are. Any property being rented out in the private rental sector would require a minimum energy performance rating of E on an Energy Performance Certificate.

According to data released by independent home buyer Quick Move Now, 7.9 per cent of homes available on the rental property market in the West Midlands currently fall below the minimum energy efficiency requirements proposed.

Managing director Danny Luke said: “According to the Royal Institution of Chartered Surveyors (RICS), the number of UK households renting property rose from 2.3 million in 2001 to 5.4 million in 2014. RICS predicts this figure will rise again by a further 1.8 million before 2025 and suggests the UK is facing a critical shortage of rental properties.

“It is, of course, imperative that properties available in the private rental sector are of a high standard and energy efficient, however losing around eight per cent of rental properties would cripple the rental market.

“For the proposed new legislation to be workable, a great deal of thought will need to go into how landlords can be supported to make the necessary changes. This is espe- cially true in light of the ment’s decision to stop Green Deal improvements.

“Recent changes to tax relief, stamp duty and lettings fees guidelines mean many landlords are already concerned about the viability of their businesses and there have been reports of as many as one in four considering selling their rental properties.

“If significant energy efficiency improvement work is likely to be required, landlords will need support if we want to ensure a vibrant and efficient private rental market in the coming years.” Governfunding