Almost half of non-portfolio landlords who took part in a recent survey were unaware of the proposed changes to EPC requirements.
From 2025, all rental properties with new tenancies must have an EPC rating of at least C and for existing tenants, landlords must comply by 2028.
But a poll found that just 54% of non-portfolio landlords with one to three properties knew about the proposals.
Buy-to-let portfolio landlords are far more likely to be aware of the government’s proposed EPC requirements than non-portfolio landlords, according to the study by Landbay.
The survey revealed that 80% of buy-to-let portfolio landlords with 10 or more properties and 70% of those with four to 10 properties are aware of the government’s EPC requirements.
When asked about upgrading their property to reach the required minimum EPC rating of C, most landlords said they would wait until 2025 to carry out necessary work. A third of larger landlords – 35% – with 10 or more properties were willing to upgrade sooner but only 20% of smaller portfolio and non-portfolio landlords said the same.
Paul Brett, managing director, intermediaries at Landbay, said: “It is not surprising that most professional landlords are aware of the EPC rating changes that are due to start in 2025. Buy-to-let investment is their business and most are hands-on landlords.
“However, awareness among smaller landlords is much lower and although they have another four years to make any upgrades to properties, they should really know what is coming down the line.
“With an uptick in remortgaging due this year, brokers should take the opportunity to ask their landlord clients if they are aware of these new EPC rules. Clients will appreciate their broker showing an interest in them beyond just the mortgage by demonstrating a wider knowledge of the buy-to-let market.”
As I’ve said before unless the Government want possibly hundreds of thousands on the streets a u turn will be in order, just over half of all rented properties are below the magic c.
The majority of properties will require major external or internal wall insulation at a cost of £5,000 to £20k and thats for starters with savings to the tenants after all the disruption of 2% annually.
Landlords will sell, it’s the perfect storm oh and don’t forget the S21 to add to the fire.
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1. It’s not confirmed that there will even be a change in the legal requirements (i.e. C rating on EPC by 2025)
2. A landlord must wait to undertake works, because if they do it now they may miss out on qualifying for an exemption status.
Before anyone actually undertakes any work… it would be good to know if it is actually going to become a legal requirement (and when). Simply saying that they want to make this change isn’t good enough. 4 years is not a lot of time as you have to factor in organising works (sometimes substantial) around tenants.
If/when it becomes law… watch the exodus of landlords out of the PRS market.
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