Buy-to-let landlords urged to start planning for tougher standards

As many as 71% of landlords in the UK still own rental properties with an energy performance certificate (EPC) rating of D or below, according to a study by Shawbrook.

The research suggests that many are at risk of failing to comply with new regulations proposed for April 2025 that will require newly rented properties in England and Wales to have a minimum EPC rating of C. Existing tenancies will have until 2028 to comply.

The Shawbrook study also found that a quarter of landlords’ portfolios contain properties that all meet the C rating, while almost four in ten (38%) only have properties that are rated D or below. Some 79% of landlords with an active mortgage have at least one property rated D or below, the finance company found.

The research forms part of Shawbrook’s second EPC, exploring the current energy efficiency challenge and investigating the role of government and the wider industry to support landlords.

The Shawbrook study follows recently released figures from the Office of National Statistics which revealed that as of March 2022, the median energy efficiency rating for private rental homes in England and Wales fell within band D.

Emma Cox, managing director of real estate at Shawbrook, commented: “It’s likely that efficiency standards will become tougher in the future, which is just one of the reasons that landlords should take note of these proposals and start making a plan.

“During such a challenging period for the UK in general, we remain committed to bringing together all industry stakeholders to develop the conversation around EPCs, and to make real progress towards our shared goals,” Cox added.

 

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2 Comments

  1. LVW4

    How would these changes be regulated?

    Report
  2. A W

    Key factor here…PROPOSED.

    Why spend money when it’s not required? Does the cost of living crisis suddenly not affect landlords? Who has thousands to splash on something that might possible, maybe be needed in the future?

    EICR’s were touted as “coming soon” back in 2012 and that took nearly a decade to come into force.

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