A proptech firm is to spend �1 billion buying up 3,000 private rented properties with low EPC ratings around the UK, which it plans to retrofit and rent out on behalf of its backers.
With many individual landlords threatening to quit the sector - faced with licensing schemes and tighter tenancy and eviction rules - IMMO will scour the market for houses it can fix up, giving the owners a get-out before potential new EPC rules forcing all buy-to-let properties up to a band C come in by the end of 2028.
LandlordZONE recently reported that one-third of landlords plan to quit the sector or do nothing to address energy efficiency failings if and when new EPC regulations kick in.
Paragon Bank revealed that 21% of landlords wouldn'�t carry out any necessary works to bring their property up to a band C, and would either sell up or not re-let them, while 12% wouldn'�t carry out any works, continuing to let their property until 2025 for new tenancies and 2028 for existing tenancies.
IMMO, which manages a �66 million property portfolio in the UK and Germany, recently raised �63 million in venture capital and also has more than �2 billion from pension funds and insurance companies, reports The Times.
It aims to make the first purchase in October using technology that lets it quickly find houses in need of renovation in areas where there is an undersupply of rentals and strong yields.
'If you have three buy-to-lets, you might be facing a bill of more than �30,000,'� says Anna Clare Harper (pictured), head of sustainability at IMMO.
'Most people have enough savings in the bank to get them through a couple of months, so suddenly getting a �30,000 bill is not an exciting prospect.'�