Many landlords are already undertaking substantial work on their properties to make them more energy efficient, a new survey shows.
The Shawbrook bank survey suggests that nearly three-in-five renters say they would be less likely to consider a property with an energy rating of D or below – prompting more than half of landlords to make efficiency improvements in the last six months. Nearly two-thirds have brought forward upgrades because of sharp inflationary pressures.
The findings – drawing on views from tenants, landlords and mortgage brokers – are part of Shawbrook’s second report on the government’s proposed changes to EPC requirements for rented homes.
Although the plans have not yet been put into law, it’s widely expected that landlords will have to meet a minimum EPC standard of C for all newly rented properties in England and Wales by April 2025. The measure would apply to existing tenancies from 2028.
Despite the impending regulatory changes, Shawbrook’s research shows that a significant knowledge gap remains. While eight-in-10 landlords say they have now heard about the 2025 proposals, more than a third know only ‘a bit’ about the changes. Three-quarters of mortgage brokers are concerned their buy-to-let clients don’t know enough.
There are concerns that many could exit the market, with significant effects on the availability of properties. Nearly two-thirds of landlords say they could sell their properties in the next five years because of the burden of EPCs. Nearly two-in-five brokers with buy-to-let clients have seen them exit the market rather than make energy efficiency improvements.
Emma Cox, managing director of real estate at Shawbrook, says: “Whatever happens with the government’s proposals, it’s clear that landlords need to be thinking about making energy efficiency improvements to safeguard their rental properties.
“As well as the need for clarity from policymakers, the industry has a significant role to play in supporting landlords. Only by working together can the industry play its part in safeguarding the future of the private rented sector.
“As a specialist lender, Shawbrook has been developing finance discounts to help landlords improve their properties – rewarding those with properties that are up to standard and incentivising those who need to make upgrades.
“We’re committed to building on the findings of this research – and the conversation around it – to developing new solutions to drive the sector forward.”
And Chris Norris, policy director at the National Residential Landlord Association, adds: “The efficiency of our housing stock needs to improve but the challenge for the private rented sector is two-fold.
“On the one hand, there is the matter of the split incentive, where landlords are necessarily required to pay for the works but see little or none of the benefit. On the other, there is the net cost of the works required, which is substantial to say the least.
“The investment required in our housing stock represents a potential burden for many landlords that they are highly unlikely to be able to shoulder alone, without significant changes to the tax system and some form of financial assistance along the way.”
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When property is as scarce as it currently is, the thought that a potential renter would be concerned about the EPC is laughable. They are simply concerned with getting a roof over their heads and will rent anything that is available!
Precisely , the last thing anyone cares about is this epc nonsense
And it most certainly is utter nonsense
What about old houses that may not meet EPC rating due to structural design but are lovely clean homes to rent out. Some properties can not have wall insulation. I hope they make exceptions. I do rise to any challenge within reason costing to make improvements
Utter BS, so 60% of potential renters would not consider a property below a D rating 😂😂, do me a favour…. Then they will be homeless, let us see how energy efficient their cardboard box is ! Morons.
Glad I'm not a shareholder of this lot if they make investment decisions based on this type of sloppy research.
Tenants no longer decide which property to rent. Landlords choose which tenants get the property.
I have one that was a C for 10 years but now a D, because when new assessor the Tenants haunted him and interfered with his job. Yes the house has solid walls and he knew the area had solid walls. What he didn’t know was I had gutted the house and lined every external wall inside with polyurethane foam backed insulated plaster board & skimmed a mammoth of a job, anyway I can’t chasing to get it changed again all our days are wasted.
Never known a tenant ask or look at the EPC, when ever I relet a property , and I've relet 3 so far this year, I have a que of good honest working tenants to choose from, I have no need to ''woo tenants''
Andrew agree but they don’t need to ask, it’s a requirement to give it to them along with several other items when entering into a Contract.
There is always a copy together with gas and electrical certificates with the contract, but do they read any of them ? of course not.
Don’t forget How 2 Rent by Shelter 8 pages when introduced, they forced it into our Contracts since then changed 13 times now possibly 45 pages, in the SE we have to serve several other documents like HMOs certs, alarms certs, emergency lights certs, + others,
I'm not a HMO landlord, but yes of course that ' how to rent' rubbish as well that also never gets read
The How to Rent Booklet is a laugh - if you haven't seen it before you rent a property it's too late! Should be part of the school curriculum instead!
Or as most call it... "How To Wipe Your Own Backside Guide"
In terms of living costs, convenience and environmental impact which is better:
A) Victorian terrace within walking distance of work, schools and shops with EPC E
B) Modern terrace on the edge of town requiring a bus or car journey to work, schools and shops with EPC C?
Good comparison!
Many aren't even on bus routes and will be lucky to survive for half the time that Victorian terraces have already lasted, with plenty of life ahead for them.
What's the environmental cost of demolition and rebuilding every 30 or 40 years?
It should be good for that 45 pages would goes a long way.
However it can prevent you serving S21 or make your Contact null & void, the ink for my little printer costs £40. (21/22) in Sainsbury's and this nonsenses gobbles it up like no tomorrow.
When I do a purchase at Toolstation/ Screwfix paying by card they ask if I want to round it up for Charity, the answer is always no because it’s likely to go to Shelter so other Charities have to suffer because of them.
Michael this is important it’s B&Q that gives our money if we buy something to the disgusting Shelter scam. Toolstation is a separate organisation and their charity is Macmillan Cancer. Although Screwfix same owner as B&Q but they claim charity goes to Macmillan and Pennies.org hence why I and many AVOID B&Q
I've taken to using Wickes now, their store is half a mile from B&Q in Norwich and I get 10% discount there .
Good Company if you had been using them while doing your renovations work you would probably now be on 15%, it really makes a difference with high cost of material & vat. I was a bit put out when they were taken over but still.
We should all as LL's be boycotting B&Q. Its an ironic slap in the face that we repair our properties that the tenants have damaged & the profits are donated to the disgusting Shelter scam that lines Pollys pockets
Nationwide also supports them although they may cause unlucky Nationwide borrowers who are Landlords to have their properties repossessed!
Thnaks to sahre [ur
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