Speaking on a panel at the British New Homes Mortgage Senate, when asked what the impact of minimum energy efficiency standards (MEES) regulations could be on landlords, Beavis said they had been given a bit of breathing space in the short term following the Prime Minister’s decision to soften requirements.
He added: “The ones that were looking at very expensive retrofit costs to bring properties up to EPC C standard have a bit more time. The stick we were using to beat the market with has been withdrawn however, from the quality of our UK property stock, the problem isn’t going away.”
Beavis said the benefit of efficient homes would “still be reflected in property valuations”, adding that there was a “weak correlation between energy efficiency ratings and the value of a property. and as the next generation comes through, who are all a lot more eco-conscious by the way, I think that will start to feed through to property prices.”
He said this would apply to the whole market, not just the private rental sector.
Green haves and have nots
When it was mentioned that buyers would pay more for new, energy efficient homes if they understood the long-term value, Beavis said everyone wants to be more socially responsible but “the willingness and ability to pay for that only goes so far”.
“Before it becomes a deposit issue, if you can’t meet that you’re not going to go any further to buy a green home because quite simply you can’t afford one,” he added.
Beavis said the same was true for electric cars as most people did not own one.
“The willingness is there but it has to line up with wallet, because if you can’t make the wallet work then ultimately people are going to be priced out and then you create a two tier market where green is for the people that can and everything else is for the ones that can’t,” he said.
