Landlords’ concerns about bringing rental properties up to higher energy efficiency level

With less than four years left until the Government wants all new private rented tenancies to be in properties with at least an Energy Performance Certificate (EPC) rating of ‘C’, new research from The Mortgage Works  has uncovered a lack of confidence from landlords about bringing their properties up to the required standard in time.

Current legislation in England and Wales requires buy to let properties to have at least an EPC rating of ‘E’ or above. However, in order to improve the energy efficiency of rental properties, the Government wants to increase the requirement to a ‘C’ rating for all new tenancies by 2025 and for all existing tenancies by 2028.

According to the poll of around 750 landlords, more than a third (35%) say they are not confident they will be able to bring their properties up to the required energy efficiency standard.

This is not only due to a lack of available capital but also a lack of awareness regarding what it takes to achieve that ‘C’ rating.

The research highlights a number of challenges facing landlords in their attempts to meet the new sustainability requirements. The biggest issue faced is perceived property constraints, which more than half (51%) think will be a hurdle. Just one in ten (10%) don’t anticipate facing any challenges in this regard.

Landlords with larger property portfolios were more likely to face potential challenges than those with a smaller number of properties, especially when it comes to property constraints: 66% for those with 11+ properties vs 49% with 1-10 properties.

The same applied to access (50% vs 43%) and disruption (50% vs 43%).

More than six in ten (61%) landlords say, unsurprisingly, that they will need to spend money to get their properties up to an EPC ‘C’ standard.

More than one in ten (14%) of them say they will need to spend all of their annual rental income, and perhaps even more than that, on making the improvements to their properties.

However, a larger proportion of landlords don’t feel they will need to spend as much with nearly a third (29%) saying they will need to spend less than 30 per cent of their annual rental income.

Nearly one five (17%) won’t need to spend anything at all – though the survey is silent as to why this should be.

Even if the money is available, around one in ten (11%) landlords admit they have no idea of what work is required and don’t know where to start. Whereas around four in ten (41%) say they have either a good or clear idea on what to do. That figure increases to more than half (55%) of those with 20 or more properties in their portfolio.

More than a quarter (27%) of landlords say a lack of funds is one of the biggest challenges they face.


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  1. Woodentop

    This will be the end of PRS.  
    To achieve  a Band C on a property pre 1990 is non-viable investment for a landlord as it will cost £k’s to achieve, if at all possible due to many buildings limitations. There are millions of rented properties pre 1970’s which will find themselves in this dilemma and landlords will throw the towel in as they will not be or seen to be making any money from their investment for a very long time and the continuing maintenance costs to maintain the high end costs additions that many will require.  Far too many properties, particulary in the North are not high rent values and seems to be a factor not taken into account in this debacle.
    This is a ‘green idea’, like many others that are getting out of control with ideology, doing more harm than good.  
    We already have a housing shortage and its about to get even worse.

  2. MickRoberts

    I’d like to know selfishly what is happening to me? I don’t want my houses any more, only keeping them for the tenants. So in 2028 which flies by, what then? I’m older, need to retire one day, do I give tenant notice? Don’t tell me to spend 10k on external insulation on a house I don’t want but tenant can’t get anywhere anymore cause of the idiocy retrospective changes Councils & Govts keep bringing in. My notes on your EPC mention.100% agree. And that’s coming from I that has managed mine for 23 years, worked with tenants, have a lot of same tenants for 20+ years, & it used to be from about 2007, you’d have a new rule every 2 years the Govt or Councils used to bring in, so you’d have to go visit all your tenants, get some’at signed.In 2020, it seems like new rule reg law being bought in every month to trip Landlord up. Letting Agent may be on top of this more with eager new staff abreast of the regs that keep getting chucked at us & they can have all the latest software to notify the tenants with proof.I’ve had many tenants over 20 years, some 24 years & 7 years to 2028 for existing tenants is no time at all.Out of all my houses, I’ve got a lot of 1970’s. And many of them are EPC rating D. And they have latest combi boiler, UPVC, loft insulation, I’m sure I have many E’s.So to get to C if anything more can be done, this is gonna’ cost & who is paying for this? I can give tenant a brand new house if Govt wish, but we all know New-Builds cost more to buy & rent.I think this C rating if comes in will be the final nail. I reckon supply will reduce then more than now, & remaining rents will rocket.The latest rule they are now proposing to bring in in 2025 is EPC to a C. I’ve already got the Combi boiler, UPVC etc., so it’s external wall insulation. Approximately £10,000 each house, but they not bringing it in for Council houses or Owner houses-Only to Private Landlords.You’ve had £100,000 of mine & tenants money on Licensing that they got nothing in return. 100k on houses that I don’t want any more, all cause I’ve got loyalty to tenants.If some Landlords only make £1000 pa, spending £10000 on insulation that then puts the landlord losing money for 10 years, why would a non charitable Landlord keep the house?Constantly changing rules retrospectively is decimating long term Benefit tenants lives & homes. This Govt & Councils have made it much more expensive for tenants to rent. Roll on EPC rating C in 2025. Rents are gonna’ rocket more.

    1. Woodentop

      Why should only apply to PRS? There are more homeowners/occupiers that would make a far better impact on ‘Green’ than the rental market …. oh that idea wouldn’t be a vote winner, just suicide for any government to even think of implementing it.

      1. MickRoberts

        That’s is, Landlord easy target again. Are Home owners lives & budgets & emissions worth less than ours then?


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