5th
Jul 2023
According to a recently held survey, one in three landlords whose properties are below the near future promised energy performance ratings regulations are planning to sell up rather than spend the many thousands needed; in some cases many of the rented homes below the rating may not be able to be upgraded.
The UK's largest online real estate property portal survey’s findings is that the number of landlords planning to sell up this year is a third higher than last year’s 20 per cent of landlords who planned to sell their properties.
However the research found that nearly two thirds of landlords – 61 per cent – had no intention of buying a property below a C rating this year whereas last year it was just under half – 47 per cent.
The survey highlights the different attitudes to EPC ratings and plans for landlords is dependent upon the number of properties they own.
Those with five + properties are possibly the most likely to invest in more properties over the next 12 months – 27 per cent – whereas those with one property is just 10 per cent.
However landlords with bigger portfolios will probably fund the necessary EPC upgrades if properties are below the C rating in time for 2025, and may be more open to buying up properties with an EPC rating below C.
There is now an increase in properties becoming available in the rental market that are that have an EPC rating of C or higher, as many larger organisations are now investing in the PRS and of course can afford associated costs to meet the incoming regulations, and fund developments with a ‘little help from their friends’.
According to the survey this year 80 per cent of landlords are now fully aware of the proposed regulations compared to 65 per cent last year, which could determine whether to sell or not to sell.
A spokesperson for the property portal, says: “Upcoming changes to EPC legislation is a growing concern for landlords, however the data suggests that many are getting ahead and focusing their investment on properties that will meet the new minimum standard and bringing these to the rental market.
“While some may sell up, those with bigger portfolios are more likely to be planning to carry out the necessary improvements to increase the EPC rating of their lower rated homes and are more willing to invest in lower EPC rated properties, potentially to improve for the future.
“This suggests there may be a changing of the guard over the next few years, with landlords with bigger portfolios buying up lower EPC properties being sold by landlords with smaller portfolios, to improve and then rent out again.”
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