Tenants 'ignore EPCs' - buy to let mortgages

31 July 2009

When arranging buy to let mortgages, a new cost that might need to be taken into account is that of energy performance certificates (EPCs).

Since October 2008, tenants entering into new agreements have been legally entitled to receive an EPC from their prospective landlords.

However, guidance from the National Landlords Association shows that the additional cost this might add to buy to let mortgages could be being spent on a document many tenants do not care about.

The organisation reveals that the average property rates D on the grading scale used - which is towards the bottom end and indicative of poor energy efficiency.

Despite this, many prospective tenants do not consider the EPC to be a priority and are unlikely to base their decision on its rating.

Meanwhile, the Royal Institution of Chartered Surveyors claims that, whether individuals are property investors or newcomers to the rental market looking to make some extra money in the present climate, many people are finding that yields still more than cover the cost of renting out a home.

Why not take a look at our best Buy to Let mortgages and make an enquiry online now.