Research from a leading UK mortgage intermediary finds that as much as two thirds of landlords will seriously consider selling their property because of not having sufficient funds to upgrade to the MEES (Minimum Energy Efficiency Level) required EPC C rating by 2028.

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Landlord properties must now have an EPC rating E to be let out, except for those which upgrade costs of more than £3,500. The government is expected to regulate a higher minimum EPC rating of C with similar exemptions for upgrading costs from E to C if more than £10,000; the average home should cost around £4,700 to retrofit from an E to C rating. 

The research’s findings claims that 25 per cent of landlords surveyed said they do not have the funds available to pay the upgrade costs, whilst 34 per cent said that they may take the option of selling their property rather than upgrading it.

Others said it was more likely that rents would be raised to cover the upgrade costs as a third said they would have to do this, another third said they had already passed other upgrade costs onto tenants by increasing rents.

Many landlords are expecting to pay expensive and overpriced costs to reach the required levels relatively quickly and a fifth of landlords are hoping the government will help fund energy performance upgrades.

However the government has failed to make any further announcements, policies or provide any real clarification for landlords on exactly which type of upgrades will suffice.

Results from the survey show that 26 per cent stated they were already planning to install a smart meter to help achieve a C rating, whilst 25 per cent will be installing LED lighting, however only 16 per cent have contacted professional tradespeople for help and advice on changes and the most cost effective to meet the required EPC ratings.

However methods which have proven to improve EPC ratings although less popular are still being weighed up by landlords as just under a quarter – 22 per cent – are considering installing a new boiler, and just one in five are considering to install more insulation to retain heat.

Around a third said the proposed costs of upgrading their properties’ energy efficiency was worrying as the cost of living and interest rates hike is really hitting them hard.

A spokesperson for the organisation, says: “The need for more efficient housing is obvious and has had a lot of focus placed on it in recent months. For renters, it means potentially lower utility bills, and for the UK’s climate goals, our leaky housing stock is a big barrier to getting to net-zero.

“However, for landlords, the proposed changes to upgrade to at least a C instead of the current E will mean they face having to foot large retrofitting bills. Our research shows just how confused and worried they are by this. Even if (as rumoured recently) the government delay the proposed deadline to 2028 for all rental properties, it isn’t long to find the money needed for the upgrades.