2nd
Feb 2022
Landlords are predicting that to reach energy efficiency targets ‘mandate’ could cost as much as £10,400 for each property, according to an online only finance lender to landlords and homeowners.
With 2025’s incoming regulations, any newly rented ‘homes’ must have at least an EPC rating C; whereas properties that have existing tenancies in 2025 will be given three years to be compliant by 2028.
Landlords failing to comply with the legislation will be banned from renting out those properties until they make them EPC C compliant.
The online financial service’s survey was carried out with 800 landlords matter which found that 62 per cent more than ‘fully aware’ of the incoming ‘mandate’ and 25 per cent classed as “somewhat aware”.
Apparently around 40 per cent of rental ‘homes’ do not meet the ‘mark’ with EPC ratings of D and lower.
Landlords with properties of EPCs D and lower have estimated that to ‘switch’ will cost them as much as £10,400 per property.
When asked how they would fund the ‘upgrade’, 71 per cent will be cashing their savings and 25 per cent will attempt to find any available government funding.
23 per cent said they will increase rents to pay for the work.
However 15 per cent said they will either sell up or simply stop renting out their properties.
The survey’s report claims that BTL investors may prefer to purchase new builds as 65 per cent of respondents saying it will be highly unlikely that they would buy any properties with an EPC D rating or lower.
The lender’s director of mortgage distribution Jon Cooper says: “With people’s lives revolving more around their homes than ever before, a robust private rented sector has never been more vital. The data suggests the looming EPC change will cause challenges, but the more support landlords receive from brokers and lenders now, the easier it will be to navigate.
“Encouragingly, awareness appears high among landlords so many will be thinking about what changes may need to be done already. As we move towards a post-pandemic environment, many landlords will be looking to the future, so it is the perfect opportunity for brokers to have conversations with their clients about the EPC ratings.
“This will ensure, where needed, a plan for financing can be mapped out to assist landlords in getting non-compliant properties up to standard.”
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