A new survey shows that while some 78 per cent of landlords have now heard about government proposals around EPC ratings, many admit to being in the dark as to the details.
New research from the Shawbrook bank shows that 73 per cent of landlords say the government has done a poor job at communicating the proposed EPC changes.
Shawbrook’s research comes following the Autumn Statement where the Chancellor reaffirmed the government's commitment to net zero with a proposal to reduce energy consumption from buildings and industry by 15 per cent by 2030.
Chancellor Jeremy Hunt has revealed that government will be doubling funding to improve the energy efficiency of buildings and industry to achieve the target, adding another £6 billion from 2025.
While landlords are currently able to let homes which have an EPC rating of D and above, the government standards are widely expected to become tougher. The government has previously set out an aspiration for a minimum C rating in England and Wales by April 2025. Future legislation could see landlords unable to take on new tenants or face fines if they fail to comply with the changes.
A lack of information appeared to be a key issue for landlords looking to comply with EPC changes with 31 per cent citing it as a barrier for them in improving the EPC ratings of their properties. Ultimately, 68 per cent of landlords agree that there isn’t enough support for them to make improvements.
Shawbrook says its research highlights the role that both lenders and brokers can play in supporting landlords with creating a more sustainable property portfolio.
The research shows that 56 per cent of landlords have now spoken to either a lender or broker about the expected EPC proposals. But four in 10 still have not addressed the proposals with either their lender or broker.
Emma Cox, managing director of real estate at Shawbrook, comments: “Landlords are already grappling with a volatile housing market so it's vital that they are planning ahead where possible. The government has made clear its aspirations for net zero buildings and every homeowner and property investor in the UK will have a role to play in getting us to this goal. However, while many landlords have done their homework and know of the current EPC proposals there is still a huge amount of uncertainty.
“While some in the industry are waiting for a confirmation from the government or direction on the timings of the proposals, others are already taking action to make their properties more sustainable.
“The fear is with materials and service costs going up, improvement work could become increasingly expensive as the proposed 2025 deadline comes closer.”
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"While landlords are currently able to let homes which have an EPC rating of D and above"
Erm....E actually.
Absolutely! It seems LLs are not the only ones confused by the Govt's proposals.
Correct.
Most everyone is apart from the lunatics running the green agenda asylum
Why on earth would we as a country who contributes less than 1% to supposedly harmful co2 emissions need an epc in the first place ?
Does China or India have them ?
Does bill gates in one of his gas guzzling private jets have one ?
Not forgetting the most taboo subject...population growth...forecast to be almost 10bn by 2050. But we're not allowed to discuss that one.
And some listed buildings are not even suitable for significant changes. If changes are introduced, they have to be across the board and not just focussing unfairly on btl!
If the idea is to improve co2 emissions for the UK as a whole, then shouldn't these regulations apply to all properties, including commercial buildings?
They say 78% of landlords have now heard of EPC’s what utter rubbish I am sure 100% of landlord know not 78% of general public but LL’s with a vested interest.
Why would landlords care or worry about EPC’s.
When they have far bigger worries like being driven out of business by Mr Michael Gove and his Stupid White Paper which includes Scrapping
Section 21 and in effect not own the Property anymore with your rights and control lost.
Why does he think hundreds of thousands of landlords have got out and tens of thousands more switched to AirBnB.
Then have the Cheek to complain about homelessness that he has Created. Shame on you, you are a disgrace and should be Sacked again.
Licensing is the other big issue bigger than EPC’s this roller coaster Tsunami is gathering pace at an alarming rate driving up costs of Housing and Renting at the worst possible time when people are struggling to live not alone to go attacking the very Roof over their Heads,
Landlords & Regulators waki / waki time to wake up.
What concerns me is I want to carry out some improvements now to D rated properties, but I read somewhere that any money spent today won't go towards the £10K maximum investment cap
I'm doing nothing until I know the full and proper facts, and costs, some just won't be worth doing I'm not tipping my hard earnt cash down the drain for no one
We the LLs are in the dark because the Government has yet to decide what it wants. How are we supposed to effect changes when they don't tell us the end game. Given their desire to reduce CO emissions why do houses that have green electrical heating have a lower EPC rating that those with Gas (dirty) heating - oh that because EPCs are based on cost on greenness - and once we can no longer fit gas boilers what has the government got planned! There is absolutely no point in LLs doing anything at the moment. Give us a government who has a clue and a rating system which reflects that accurately then we can see what needs to be done - sell up probably!
Laura, no point in spending money improving the insulation of your property for to keep warm the Tenants of the Street that you don’t know from Adam to take Control of your
Property.
If landlords pay to have their properties better insulated will the cost be tax deductible against profit or is it seen as an improvement and not tax deductible?
That is the problem. Some things are deductible others are improvements. A modern night storage heater to replace an old one is almost certainly deductible, underfloor heating and a heat pump would be a capital improvement. LED lightbulbs are deductible, an extra jacket on your hot water cylinder is an improvement.
The one that really bugs me is solar panels. In a bills inclusive HMO electric from the grid is a fully tax deductable expense. Solar panels are an improvement and even though they will directly provide most of the electric for the house there doesn't seem to be a mechanism in the tax system to recognise the cost of generating the electric (purchase of solar PV) that would otherwise be a fully deductable expense. The fact that surplus electricity can be sold to a utility company makes it even more frustrating.
Doing nothing at all until more is known, then I am likely to sell up.
'Many are in the dark about the details' because they haven't been published yet!
One day, EPCs might be required by someone to be something but we don't quite know yet how to measure anything!
Never in the field of EPC regulations has so little been known by so many about so much!
Well they said we were in the dark, maybe the leci went out.
I can believe it, the government doesnt do a particularly good job of fanfaring changes in compliance. Perhaps part of the big conspiracy to create a national landlords database so they can send everyone Christmas cards from HMRC (plus of course update everyone on MEES).
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