Property insiders are warning that landlords may be forced to pay up to £15k per property to meet new standards in the government’s flagship scheme.
New changes announced by the government could mean a hefty bill for landlords.
Michael Gove, Minister for Levelling Up, has outlined plans to halve the number of poor-quality rentals over the next eight years, meaning that private rental homes may be required to come into line with the Decent Homes Standard currently used by local authorities.
An overhaul of the Housing, Health and Safety Rating System assessment standards – announced in 2019 – is long overdue, though at present, nobody can say exactly what the new standard would look like.
Chris Norris, of the National Residential Landlords Association, a trade body, told The Telegraph that he estimated costs would be between £10,000 to £15,000 for an extremely substandard home and described bringing private lets into parity with public housing as “Counterintuitive”:
“The additional burden on landlords comes while they are also being forced into £10,000 eco-upgrades to meet the Government’s Energy Performance Certificate targets. Experts have warned more will sell up adding to the rental sector’s severe shortage of homes that has pushed up rents.”
Stuart Pawelczyk, Head of Commercial Mortgages at Swoop as warned that property investors must steel themselves for substantial unexpected bills when the new rules come in:
“It is vital for landlords to review existing loan facilities and if you are a property investor or professional, to make sure you are on the right terms for you. A simple review could save you thousands and limit the impact of this unforeseen cost.”
Swoop is looking at approaches to helping as many landlords and property investors as possible. If you are concerned about what the new rules could mean for you, call Stuart’s team at 07498239501, send them an email at Stuart@swoopfunding.com or book a meeting here