Sunak junks EPC regs – but most landlords have already paid for improvements

In what some might consider a surprising finding, Shawbrook Bank claims that their research indicates four out of five UK landlords had made preparations – and spent money – to comply in advance with the previously proposed 2025 EPC regulation for residential letting properties.

The regulation, which has now been scrapped, would have required landlords’ rental properties to adhere to a minimum EPC rating of C by 2025 for new tenancies, and for all rental properties by 2028.

The Prime Minister, Rishi Sunak, faced a blizzard of criticism at the end of last week when – with a General Election hoving into view –  he junked or delayed many of the initiatives and plans to reach Net Zero. The rental EPCs were just one of several casualties.

Shawbrook’s  research was conducted by Censuswide in August 2023, surveying 1,012 UK landlords aged 18 and over.

The key findings include:

80% of UK landlords said they were already prepared for the 2025 EPC regulation deadline. Of these landlords almost a third (30%) said their properties already have an EPC rating of A-C, while half (50%) said they had plans in place to improve their EPC rating before 2025.

17% said they were not prepared and had no plans to improve the EPC rating of their property.

3% said they had not heard of the regulation.

Nearly half (46%) of landlords have spent between £500-£20,000 on improving or investing in their property in the last year, with the mean average amount landlords have spent being £25,148. This average amount rises to £37,164 for London-based landlords.

A fifth (20%) said that cost of labour for property improvements was a key concern for their rental properties over the next six months, while 16% said EPC regulations were a concern.

The proposed regulations have also prompted many landlords to be more energy conscious when investing in new property, with over a quarter (28%) prioritising buying newer, more energy efficient properties in the next six months.

When asked about previous rumours of the initial EPC regulation deadline moving to 2028, 31% said it would give them more breathing space to complete improvements across their portfolio, while 29% said they will progress with their improvement plans regardless.

Emma Cox, Managing Director of Real Estate at Shawbrook Bank says: “Scrapping the impending EPC regulations might free up capital in the short term for landlords who haven’t yet invested in improving the energy rating of their properties.

“But while policies shift, climate change is going nowhere, and energy efficient buildings will remain central to net zero plans.

“Rules might not be changing as soon as 2025, but professional landlords with modern, energy efficient stock will be in the best position to attract tenants, as well as reduce potential voids, and importantly, be prepared for future legislative change.”

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6 Comments

  1. MrManyUnits

    Well LL”s who have undertaken any works must have too much money or a screw loose.
    Clearly the whole “c” thing couldn’t work as not enough builders /impractical Taft would have made hundreds of thousands homeless.

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  2. Ding Dong

    not sure who made up this 2025 deadline…never been anywhere near law

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  3. LVW4

    Most LLs have not already made the improvements!

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    1. AcornsRNuts

      You mean they haven’t listened to Gibbons gibberish. I am surprised when he speaks so much (non) sense.

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  4. Woodentop

    Cloud Cukoo land?

    80% of UK landlords said they were already prepared for the 2025 EPC regulation deadline. Of these landlords almost a third (30%) said their properties already have an EPC rating of A-C,

    80% were more interested in leaving the industry and reportedly around 40% have.

    The next question is what will happen when the looney left take power …………… it will be back to haunt us?

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    1. jan-byers

      Of course not everything will be FREEEEEEEEEEEEEEEEEEEEEEEEEEE
      LOL

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