Landlords to make efficiency improvements

TENANTS ARE INCREASINGLY turning away from older, inefficient properties in favour of newer, better-quality ones, according to the industry research[1]. Nearly three in five (58%) renters say they would be less likely to consider a property with an energy rating of D or below. This has prompted more than half (54%) of landlords to make efficiency improvements in the last six months and nearly twothirds (63%) have brought forward upgrades because of sharp inflationary pressures.

CREATIVE AND PRACTICAL REPORT

The findings are part of a second creative and practical report on efforts to improve energy efficiency in the UK’s rented sector, which continue to be influenced by the government’s proposed changes to energy performance certificate (EPC) requirements. Although the plans have not yet been put into law, ministers have previously indicated that newly rented properties in England and Wales will have to meet a minimum EPC standard of C by April 2025 – tougher than the current E standard. The measure could also apply to existing tenancies from 2028.

SIGNIFICANT KNOWLEDGE GAP

Despite the possible regulatory changes, the research shows that a significant knowledge gap remains. While eight in ten (78%) landlords say they have now heard about the 2025 proposals, more than a third know only ‘a bit’ about the plans. Three-quarters (75%) 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.

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Source data:
[1] https://www.shawbrook.co.uk/media/5064/shawbrook-epc-2-report.pdf