Households living in rental properties across the north of England face the biggest financial headache from soaring fuel price rises, according to a new data study into the energy efficiency of landlord-owned properties.
Property data and insight platform, Homesearch analysed rental properties across the UK, to uncover which areas have the best and worst Energy Performance Certificate (EPC) ratings and will be the hardest hit financially.
Tenants in Blackburn will face the highest fuel bills in the coming months, with 78% of rental properties having a poor D-G EPC rating. This compares to 74.8% of homes in Llandudno, closely followed by Blackpool with 74% of rental properties falling below the critical A-C EPC rating.
Conversely, London boroughs dominated the Top 10 most eco-friendly rental areas to live. Those tenants living in the London borough of Tower Hamlets will experience the lowest energy bills nationally, with 72% of rental properties boasting an A-C rating. This is followed by Southwark (63%) and Islington (58%).
The picture nationally is equally as glum for tenants trying to juggle their personal finances during the energy price hikes facing the nation. Homesearch data found that 62% of rental properties in the UK are not energy efficient and have an EPC rating of D-G meaning they will be hardest hit by rocketing fuel bills.
Looking in-depth, the following are the top ten areas which have the worst and best EPC ratings for rental properties in the UK:
Least energy efficient (EPC rated D-G) Most energy efficient (EPC rated A-C)
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With average rental prices significantly higher in London than other areas of the UK, Homesearch data also examined which boroughs in the capital are home to the least energy efficient properties. Renters in Waltham Forest will see the biggest surge in energy bills, with 68% of properties having a D-G EPC rating, compared to Bexley in second and Redbridge in third with both boroughs on 66%.
As Scotland has a slightly different EPC grading system to England and Wales, Homesearch examined rental areas north of the border in isolation and found that Dumfries (75% graded D-G) has the least eco-efficient rental properties. This was followed by Kirkwall (71%) and Galashiels (69%).
Sam Hunter, COO of Homesearch, said: “With rising inflation and the cost-of-living crisis set to worsen, over half of those renting in the UK will pay a premium for their energy usage simply due to the energy inefficiency of their home. Our data indicates a clear North-South divide in the environmental viability of rental accommodation and many households are going to struggle to pay energy bills through no fault of their own.
“Although it is a postcode lottery, we envisage that the EPC rating of a property is going to be a key decision factor for tenants when choosing a rental property, especially as energy consumption and prices spiral later this year.”
Now why should London shine to high? Is it because so many are classed in a different eco zone which has no comparison to other parts of the country i.e Urban rated with all the benefits of sheltered logarithm in the software? (There is a set requirement to confirm location in the software based on region and type).
Window glazing, insulation and boilers are principally the same everywhere in the UK. While out of London you are looking at more properties exposed to the elements and colder climates, the further north you go and so many of stone construction. Is it6 any wonder there is a difference.
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I disagree with the closing conclusion “we envisage that the EPC rating of a property is going to be a key decision factor for tenants when choosing a rental property, especially as energy consumption and prices spiral later this year.”
Lucky indeed will be the prospective tenant who has the luxury of being picky about the EPC of a rented property. All rented property has to meet a threshold EPC rating. The way things are going the key factor for aspiring tenants won’t be the EPC. First consideration will be finding somewhere to rent in the first place, second consideration will be can they afford the rent and pass the referencing? Then, if the first two criteria are satisfied, they take a look at the property and if it’s half decent they will have to snap it up before the next prospective tenant in line does. It all comes down to supply and demand, supply is shrinking and demand is rising, it’s a sellers market.
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