Low EPC Distressed & Repossessed BMV Property

Welcome to the Low EPC collection of UK distressed and repossessed property. The list below includes distressed property with BMV potential that we have identified as having a Low EPC during the past month.

Why can Low EPC properties be purchased at a discount?

We are identifying growing numbers of distressed sales where the property has a Low or Poor EPC rating below a C.

Much of this is being driven by recent UK government announcements around changes to the minimum EPC rating (changing to a minimum of a C by 2025) required for lettings. Many landlords and investors are fearing the worst and rushing sales through before the proposed changes come into force. As a result, the market now has a new type of motivated seller!

Improving the EPC rating of a property can add value to a property and boast the potential rental income achievable.

Problem of a Low EPC rating

An present, an EPC rating of an F or G means that a property cannot be legally let as the national minimum standard is currently an E rating. However, a rating below a C is a problem in the current market given the proposed changes to the minimum standard, rising energy costs and the changing attitudes towards energy consumption. To further compound these issues, lenders are beginning to decline lending on these type of property as they realise the detrimental impact a low EPC rating has on the value of a property!

All of these issues taken together, along with the impending changes to the minimum EPC rating, dramatically reduces the pool of buyers and vendors will often have no option but to discount their asking price to reflect this, thus making them motivated sellers.

Taking advantage of the opportunity

Improving the EPC rating can add real value to a property, making it mortgageable, and lettable as well as providing a boost to the rental income achievable.

In many cases, a low EPC rating can be improved (up to at least an E) with a few simple measures such as installing energy efficient light bulbs (LED) or fitting thermostatic radiator valves (TRVs) throughout. Other measures include cavity wall insulation, heating controls or changing the main source of heat. It is also possible to get an exemption where the property cannot be improved to meet the minimum standard of EPC band E due to factors such as high cost, 7 year payback rule, all improvements made, devaluation, new landlord (6 months only) and a few others.

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106 Distressed Properties Identified

Questions, comments or feedback about the list? Send us a message or start a discussion in the UK Distressed Property Facebook group.

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