Landlord confusion over EPC plans causes concern

There is widespread confusion over energy efficiency rules planned for the private rented sector, according to Mortgage Advice Bureau.

Following a consultation in 2021, the Government issued a deadline of 2025 for newly rented properties and 2028 for all other properties to get to a minimum EPC rating of C. However, reports recently suggest this deadline could be pushed back to 2028 for all rentals.

However, Mortgage Advice Bureau research found that while the majority of landlords (86%) know what their EPC rating is, nearly half (47%) said they believed that the plans around EPC rating were ‘guidance’ and not regulatory. What’s more, 18% weren’t aware of the plans at all.

Among the landlords who knew of the plans, over a third (34%) had heard about them via the government, while slightly fewer were informed through the media (32%) and family and friends (30%).

The main concerns of landlords around upgrading their properties by the 2028 deadline are the costs of making all the necessary upgrades (27%) and finding a trusted tradesperson (27%). A further 23% were worried about the disruption it may cause tenants when they make the upgrades, as well as the time it may take (also 23%).

Ben Thompson, deputy CEO of Mortgage Advice Bureau, says: “Landlords were facing a race against time to retrofit their properties and meet incoming EPC legislation.  

“As well as cost of living pressures and higher interest rates working against landlords meeting the initial 2025 deadline, they were also clearly in the dark about the changes that they needed to make.”

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7 Comments

  1. MrManyUnits

    As we all know in the commercial world from the 1st of April 2023 it is illegal to rent out a property with a d rating, even if mid lease.

    So what’s happened, nothing and the same with residential or the possibility of millions homeless.

    it’s too expensive, what do you do with a listed building ? I have a grade 1? Not enough builders to build a room in the roof so another embarrassing u turn, the government have well and truly shot themselves in the foot and many other places.

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    1. AgentBen

      Are listed buildings not exempt?

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      1. Estate Agent W1

        Listed buildings are no longer exempt. You need to apply for an exemption certificate and that will only be granted if works required to upgrade the EPC are in excess of a £3,500, I understand this will also change soon and the bar will be raised.

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        1. aSalesAgent

          GOV.UK still says otherwise: Energy Performance Certificates for your business premises: Exemptions – GOV.UK (www.gov.uk)

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        2. aSalesAgent

          GOV.UK still says otherwise: gov.uk/energy-performance-certificate-commercial-property/exemptions

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  2. Will2

    This article seems to refer to the private rented sector housing only and not the commercial market.  Unless I have missed something at present is it not a requirement YET in law to meet a EPC C rating nor formal guidance. Therefore it is not surprising there is widespread confusion. If my understanding is correct (if it is not I stand to be corrected) until such proposals are enacted nothing changes.  The advance warning of the proposals gives landlords, agents, advisers the heads up on what is proposed and likely to occur so forward thinking landlords can prepare for what might be or is likely to be.

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  3. PRS is fun

    If “the government issued a deadline”, this suggests a law was passed, however this was never the case. There is no such law, no regulation. It seems like the press have gone into overdrive promoting a law that doesn’t exist. Common sense however says that the government will enact a counter-productive feat of central planning, but until that time we wait.

    It just wouldn’t do to have a free market where tenants choose to pay more rent upfront for an energy efficient home. Oh no, the drive for net zero produces an underclass that can’t afford the expensive energy, so the planners decide that the middle class are supposed to fund all this. And yet they have the audacity to sell up! Come back you guys what’s wrong?

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