14th
Nov 2024
More than two-thirds of private landlords has at least one property fails to meet the new EPC 'C' standards, according to a mortgage lender’s latest survey.
Research by the mortgage lender shows landlords have a high level of awareness of the EPC standard, with 92% of landlords aware of the requirements.
However, only 67% report a thorough understanding.
Landlords who have four or more BTL mortgages do have a lower understanding of the requirements as 62% claim they are fully aware of the requirements whereas 69% of consumer borrowers who are not regulated understand the EPC C standards.
Around 42% of landlords plan to upgrade their properties to meet the new standards.
Meanwhile, 24% intend to undertake a minimum amount of required improvements at the cheapest cost and will continue to rent them out, while 14% intend to carry out the necessary work on their properties to maximise the long-term value and will continue to rent them out.
Another 3% will make the necessary improvements before selling the property.
However, 34% intend to sell without making any improvements or will not re-let the property, whilst 17% responded with 'other,' and 3% plan to continue renting out their property without making any changes.
Those who are planning to make the necessary upgrades, 17% will fund the work with their savings, 41% will finance it through raising rents , 28% will rely on grants. 12% plan to release their portfolio’s equity, and a further 5% will seek further advances from a mortgage lender whilst another 5% will take out a loan.
The mortgage lender survey comprised of 720 online interviews over September and October.
A spokesperson for the lender, says: “With potential new legislation aiming to raise energy efficiency standards and tackle fuel poverty for millions, landlords face important decisions around future-proofing their investments from an EPC perspective.
“Thankfully, this research helps demonstrate growing awareness among landlords around this topic and highlights both the financial and planning considerations involved in meeting these requirements.
“It also underlines the tremendous potential for lenders and intermediaries to support sustainable practices in the buy-to-let sector, particularly through tailored green mortgage products that align with both regulatory demands and landlords’ unique needs.”
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