News

Landlords, property investors and business owners have faced a multitude of ever-shifting challenges in recent times, some of which it appears could stubbornly remain for an extended period, where others may have been eased, for now…

Last month, the property investment sector was rocked by the prime minister’s decision to scrap plans enforcing minimum energy performance ratings. The proposed changes would have meant from 2025 all newly rented properties both residential and commercial had to reach an EPC rating of C or above.

Many investment properties and business premises would of course meet this requirement, however many will require substantial investment and upgrading to do so. The question of how this can be funded…. is something we have discussed with a significant number of clients; whether this be from external investment, refinancing the subject property to release equity for reinvestment or indeed from wider assets or portfolio refinancing.

Despite finishing the consultation over two years ago, the government had not issued a formal response on actions around EPC law. Without clarity on these changes until recently, understandably many landlords were not prepared to gamble on the outcome.

What are the implications for the sector?

The fallout from this was some landlords and investors had taken the view that to meet these new standards would be financially prohibitive. This meant many of them facing the difficult decision to potentially sell specific properties within their portfolio or in some cases leave the sector. Conditions in the market have been challenging, even without this additional cost outlay coupled with rising interest rates.

The news of the backtracking on minimum EPC level has been greeted with relief by some but frustration by others who had already paid out for costly upgrades, and a degree of uncertainty remaining.

As fixed-rate periods expire, there will likely be further concern amongst landlords and investors on the viability of their property investments, however it is vitally important they have access to expert advice to allow them to assess their options from the whole of market finance options available. This includes assistance with refurbishment where needed, maximising borrowing from existing rental yields and of course access to competitive rate options.

How Omega support property investors, business owners and landlords

With a variety of financial solutions, the Omega team have been able to support the investment and rental sector through a range of mortgage options and competitive rates that are not widely available on the market. If you are one of our valued brokers, IFAs or introducing partners with a client who has tried to secure terms but either been unable to meet the debt level needed or simply frustrated with the terms quoted, please start a conversation with one of our team today. Our decades in the commercial mortgage markets and long-term relationships with lenders mean we can support you and your clients, including many landlords or property owners who may otherwise be faced with the difficult decision of selling their investment properties, finding funds to meet a possible shortfall or indeed how to fund required refurbishment.

Our experienced and professional team are happy to talk through your specific needs, please do pick up the phone: 0333 6000 007
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