16th
May 2022
A business insurance company’s recent survey of more than 600 landlords reveals 55 per cent have yet to upgrade their properties’ energy efficiency.
As is common knowledge for the majority of landlords, those with properties in England and Wales are only allowed to let out their if their properties have a minimum EPC rating E.
There is the constant government threat in its Minimum Energy Peraformance of Buildings Bill, of increasing the minimum EPC requirement to C for all new tenancies by 2025 and current tenancies must meet this obligation by 2028.
The insurance service states that if the new standard which is more than likely to be introduced for rented homes, then 55 per cent of those landlords that took part in the survey said they would have to ‘upgrade’ their properties to meet the energy efficiency requirements.
Around a third of landlords claimed having to meet the standards is a major challenge and a sixth said they were extremely concerned about their capability of maintaining their properties.
The survey also found to meet the efficiency new standards it will be at substantial cost to landlords.
Approximately 20 per cent said they would have to spend more than £10,000 and around 25 per cent predicted it would cost them between £5,000 to £10,000.
Measures to improve properties’ energy efficiency include, solar panels, cavity wall insulation and double glazing.
In April the government’s Boiler Upgrade Scheme was introduced which landlords can apply for a £5,000 grant if installing air source heat pumps in their properties.
The insurance service quotes two landlords from its survey.
A BTL landlord who has five properties, Chris Clegg, says: “The new regulations and licensing are coming too hard on the heels of the pandemic. I've temporarily lost money so cash is very tight. Then I have to spend thousands on licences, and thousands more on EPC efficiencies. It’s very close to impossible.”
Jeremy Wadley, who owns numerous properties let out in Bristol and North Somerset, says: “If the EPC changes come into force, I am concerned about the costs. If I'm raising from an E to a D, then I would be happy with this as costs per property will reach approximately £500, but if it’s raising to a C, then predicted costs are £5,000 per property. On top of losses from the pandemic, increased taxes, increased regulations… it’s unrealistic.”
A spokesperson for the insurer, says: “With a potential 2025 deadline for a new minimum EPC rating fast-approaching, our study has revealed the worries facing landlords who will need to make drastic and costly improvements to increase the energy efficiency of their properties.
“The rising cost of living is having an impact on us all but with the prospect of tighter EPC rules on the horizon, landlords are feeling the squeeze. Many are concerned about how they’ll fund these improvements and whether they’ll be completed in time.
“This is putting significant financial pressure on landlords and, with a fifth already concerned about their properties' ability to generate revenue, this could be a real threat to the rental market.
“Insuring over 300,000 landlords has offered us a fresh perspective on the significant role they play in providing safe and affordable housing, in addition to the £16 billion annual contribution to the economy. Therefore, it’s important they receive the necessary support, education, and clarity to meet the requirements set by the government.”
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