Property Newsletter 10th Feb 2025
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LANDLORDS TO PAY UP TO ￡15K A PROPERTY TO MEET AMBITIOUS NEW ENERGY TARGETS
Landlords will need to spend up to ￡15,000 per property on energy efficiency improvements to meet stringent new Government standards. By 2030 – just five years away – all landlords will need their properties to have a minimum EPC C grade to be legally let, with a consultation on the proposals launched. Under the plans, landlords are expected to start with 'fabric improvements' such as installing double glazing and cavity wall and loft insulation; moving on to solar panels and batteries if their properties still fail to make the grade. This announcement follows on from another consultation, proposing to change the way EPCs are calculated. As a result, even some properties that are already C or above may still need to do additional work on their properties. Homes that are already rated A-C will be given some additional time however; continuing to be considered compliant until their current EPC runs out. This may not provide much additional time though, as the Government is also consulting on reducing the validity period of EPCs. The Government says the ￡15k cap could be reduced to ￡10k in areas commanding lower rents, or for properties in lower tax bands, estimating the average cost to landlords whose homes fall below a ‘C’ to be between ￡6,100 and ￡6,800 per property.
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Source NRLA
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WHY ARE INTEREST RATES HIGH AND HOW QUICKLY MIGHT THEY FALL?
We began raising interest rates at the end of 2021 to help reduce inflation. It is working. Inflation has fallen a lot and inflationary pressures have eased enough that, in August 2024, we cut the interest rate from 5.25% to 5%. Then in November, we cut it from 5% to 4.75%. And in February 2025, we cut it to 4.5%. If those pressures continue to ease, we should be able to reduce interest rates further over time. But we can’t say precisely when or by how much. That depends on how the situation evolves. So, we will be monitoring the British economy and global developments very closely, and taking a gradual and careful approach to reducing rates further. We make our decision on interest rates every six weeks or so. Each time, we look at the state of the economy and recent global developments, and what we expect for the coming months. The factors we consider include: how fast prices are rising, how the UK's economy is growing, how many people are in work. Our next decision will be announced on Thursday 20 March 2025.
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‘STAGFLATION’ FEARS AS BANK OF ENGLAND CUTS GROWTH FORECAST AND WARNS OF PRICE RISES
UK economy expected to grow by just 0.75% this year, in fresh blow to Rachel Reeves’s attempts to raise confidence. Business leaders have blamed the sharp fall in confidence on Reeves’s decision to increase employer national insurance contributions by ￡25bn from April, while concerns are also rising over the global outlook as Donald Trump launches a tariff war on the US’s allies and enemies alike. Some analysts suggested the Bank’s forecasts showed the UK sliding towards “stagflation” – a toxic combination of weak growth and high inflation which is hard for policymakers to manage.
Source: theguardian.com