A new study has found that the government’s ambitious target for all rental properties to hit an EPC rating of C by 2030 is not only unrealistic but could also have damaging repercussions for the private rental sector.
Some 95% of respondents surveyed by Landwood Group, national chartered surveyors and auctioneers, labelled the goal as impossible.
Private landlords are already abandoning their property portfolios in record numbers, according to Landwood Group. With some of the oldest housing stock in Europe, UK landlords are deeply concerned about the viability of this new policy.
Discussions on social media reveal a growing chorus of concern that this mandate could slash profitability and reduce the availability of much-needed rental properties.
Mark Bailey, partner at Landwood Group, said: “This so-called ‘green’ initiative might look good on paper, but it’s built on shaky foundations.
“The focus on improving modern social housing, overlooks the vast majority of Britain’s private rental properties which are ageing and would require significant, costly upgrades to meet the EPC C standard.
“For many, achieving this rating is not just challenging; it’s nearly impossible without substantial financial investment.
“Previously, government subsidies helped with upgrades like heat pumps and insulation. Now, landlords have little choice but to sell or raise rents to cover these high costs.”
As a result, Landwood Group is witnessing a surge in landlords auctioning their properties, from single homes to large portfolios.
Baily continued: “The consequences for renters are clear. As landlords are forced out of the market, tenants will face fewer housing options and higher rental prices.
“Energy efficiency is certainly important, especially in light of rising energy costs. But what use is energy efficiency if people can’t afford a place to live? The Government needs to address the housing crisis before imposing such stringent requirements. As it stands, this policy risks doing more harm than good.”
Sharp rise in rental homes being sold as landlords flee buy-to-let sector
Unfortunately, anything the government seems to do, around rental policy, risks more harm than good. Sadly, they’re the only ones who don’t see it!
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Yes it’s a shame that in 2024, the biggest threat to tenants homes is Govt and Councils and the constant retrospective changes they keep imposing.
We’ll make em EPC A if u like, massive mould and condensation that sometimes hard to undo.
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More landlords trying to find a way to continue making money from renting out substandard properties to people with few other options. And they wonder why they have a bad reputation
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Well these houses weren’t substandard till Govt said EPC D no longer acceptable. Tenants very happy with em and the cheap rent they were.
All my tenants had a choice pay £600pm EPC D or I’ll buy you new build £1000pm EPC A and you’ll save £30pm on your gas bill. By the way the EPC D have already got new boiler windows doors etc.
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I have a couple of old cottages I rent out, their EPC’s are not great but achieving an uplift in banding is completely unrealistic. Cost v benefit is none existent.
I live in a very old house with a dreadful EPC – F rating……….. Built in 1792…………… But some of the things it fails on are stupid, Lack of cavity wall insulation mmmmmmmmm walls are 2 to 3 ft deep. lack of roof insulation, although we do have some and it is new and very deep and some of the roof is a thatched roof which apparently doesn’t count as insulated at all, even though it is in good condition and very thermally efficient. Solid floors, etc .
EPC assessments are bonkers anyway, thousands and thousands of pounds to raise it from a F to an E and “savings” so pitiful it would take 58 years to “save” the outlay, and much of which by then would need to have been replaced long before the 58 years were up anyway.
Someone needs to inject some common sense into this argument. Much of Britain’s housing stock is old and raising bandings is unrealistic due to cost v benefits and as you say either much of the housing stock is then deemed unrentable and what remains more expensive. Why can’t they see they are making things worse . Yes there are bad landlords out there but why not just tackle them rather than this sledge hammer to crack a nut approach that has unintended consequences. Many of the worse offenders aren’t even private landlords anyway, its the local authorities and housing associations – so go put their houses in order and leave private landlords alone.
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If it’s about saving the planet why are councils are housing associations exempt? However, if it’s about raising standards in poor quality housing … why are councils are housing associations exempt?
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Daily we seem to be bombarded with big stick threats to the PRS.
I’ve managed to sell 75% and believe 50% of Landlords will sell up over the next 10 years.
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good old Labour
LOL
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