- Changes to ‘Green Tax’ legislation could cost buy-to-let landlords up to £5,000
- From April 2018 loans are no longer available to boost a property’s energy efficiency – expected to affect approximately 330,000 investors
- One Cross Street in Manchester uses low-carbon tech to be one of the city’s most energy-efficient properties (Surrenden Invest)
The UK buy-to-let landscape altered significantly during the first half of 2016, however, the industry has shown few signs of faltering. Advisors surveyed in Paragon Mortgages’ latest Financial Advisor Confidence Tracking (FACT) report revealed that 24% of their business in Q1 2016 consisted of buy-to-let, a modest 1% increase from the previous quarter.
Changes to the rules surrounding the ‘Green Tax’ could disrupt this seemingly endless upward trajectory with landlords liable to spend up to an additional £5,000 on their properties.
Proposed by the Department for Business, Energy and Industrial Strategy, the ‘Green Tax’ will see landlords having to pay in advance for property improvements such as cavity wall filling, insulation and efficient boilers. Designed to save tenants money on rising fuel expenses, the government are predicting 11% in savings for the average household by 2020.
From April 2018 all properties must meet a Band E energy efficient rating at least, but with loans no longer available to boost a property’s energy efficiency and landlord’s liable for the required works, it is expected to affect approximately 330,000 investors.
There are however opportunities arising that could cause this latest change to become redundant for buy-to-let investors. Property consultancy SurrendenInvest‘s most recent development in the heart of Manchester, One Cross Street, uses modern low-carbon technology to ensure the building is one of the city’s most energy-efficient.
“This change to legislation for buy-to-let landlords will cause savvy investors to seek out opportunities that already meet the new requirements, a future-proof investment. With a Band A energy efficiency rating, One Cross Street is win-win, allowing investors to be exempt from the new ‘Green Tax’ and its residents to benefit from significantly lower running costs.”
One Cross Street is situated in the city centre just 5 minutes’ walk from Manchester’s prime business and exclusive leisure district, Spinning fields, as well as from the luxury shopping district New Cathedral Street. Redeveloped from the stunning structure of a former cotton mill, the original building of One Cross Street was built circa 1907.
With prices starting at £130,323, the property is formed of 34 luxury apartments featuring elements of the existing structure left such as exposed brick and beams. The project has also included the creation of a modern new-build extension which will include two new penthouse levels featuring floor to ceiling glass walls as well as a beautiful roof terrace available to all residents. Properties also come fully furnished with high end fixtures and fittings.