Currently, anyone selling a property in the UK is required to have an Energy Performance Certificate (EPC) before they put the property on the market. However, even though the EPC is in the pipeline, the full details of how energy efficient a property is aren’t always available for early viewers.

In a bid to get over this issue, and help encourage home owners to become more energy efficient aware, a new EU Directive will come into force in 2012 making it compulsory for all EPC ratings to be published upfront with for sale adverts, so that everyone will know the ratings before they even look at a property.

If you’re thinking of putting one of your investment properties on the market in the next few years, then experts are advising that it’s a good idea to check the energy efficiency of your property now and, if necessary, get energy improvement work done sooner, rather than later.

In addition to improving individual properties, the new legislation will also help the government on its bid to reduce household carbon emissions by 29% by the year 2020.

A recent survey involving over 200 leading estate agents in the UK, carried out by movewithus, analysed the best ways of adding value to a property. They identified the most profitable additions that could be made and looked at how much value could be added, based on average price values.

The number one most profitable addition was found to be adding an extra bedroom, which could increase the value of a property by over £14,500. A loft conversion adds over £11,000 and an extra bathroom can add on just over £10,000.

If you’re prepared to put a bit of work and money into your property before you sell, you could end up with a higher sale price than you bargained for. Many of the improvements, such as a loft conversion, extra bedroom and extra bathroom, could also add a significant chunk of extra rental income to your property too, if you think about improving it early on.

Here’s the top 10 most valuable additions you can add to a property.

The first percentage figure relates to the typical average value added and the second monetary figure relates to the added value based on the Land Registry’s average house price (of £165,596).

1. Extra bedroom, 8.8% – £14,572
2. Loft conversion, 7.1% – £11,757
3. Extra bathroom, 6.1% – £10,101
4. New kitchen, 5.8% – £9,605
5. Central heating, 5.4% – £8,942
6. Off street parking, 5.2% – £8,611
7. New bathroom, 5.1% – £8,445
8. Conservatory, 5% – £8,280
9. Double glazing, 4.2% – £6,955
10. New conservative decoration, 3.7% – £6,127

Residential rental prices in the UK are stabilising as the number of accidental landlords declines due to an improvement in the property market, it is claimed.

The latest figures from the Royal Institution of Chartered Surveyors show that 6% more estate agents reported a rise in new instructions from landlords in the three months to the end of July, compared with 21% in the previous three month period.

The number of rental properties coming on to the market is falling quickly, leading to less choice and potentially higher rents for those priced off the housing ladder, it says in its report.

The main reason for the fall in new landlords is the disappearance over summer of so-called accidental landlords who decided to rent rather than sell their properties in a falling market.

Their numbers increased at the end of last year as property prices reached lows but now evidence of price stability in the housing market has encouraged owners to sell instead.

‘This may be the first indication that the stabilisation in the residential sales market is having an impact on the number of accidental landlords entering the lettings sector,’ said a RICS spokesman.

It now expects rental prices, which had been falling, to start to stabilise.

The balance of surveyors reporting a fall rather than a rise in rents was 29% in the quarter, compared with 55%.

In an optimistic sign for buy-to-let landlords, an increasing number of agents expect rents to rise in the coming months.

The balance expecting a fall rather than a rise improved from 25% to 6%, RICS said.

‘The number of properties coming on to the rental market has slowed as the sales market has begun to stabilise.

This is good news for landlords, who were coming under pressure to reduce rents as a result of oversupply.

The need to respond in this way is easing and, providing the housing market holds firm, the outlook for the rental market should continue to improve,’ the spokesman added.

However, the change in sentiment could put those searching for affordable accommodation at a disadvantage.

Figures from RICS, due next week, are expected to show that housing market activity continued to improve in August.

source: http://www.propertywire.com