Seven in 10 landlords in the UK still own rental properties with an energy performance certificate (EPC) rating of D or below, according to new research by Shawbrook.
As part of Shawbrook’s second EPC report, the research explores the current EPC challenge, including the role of the cost-of-living crisis in driving change, investigating the knowledge gap, the role of Government and the wider industry to support landlords in improving efficiency.
According to the report, only a quarter of landlords’ portfolios contain properties that all meet the C target for energy efficiency, and nearly four in 10 (38%) only have properties that are rated D or below.
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.
Emma Cox, managing director of real estate at Shawbrook, said, “It’s likely that efficiency standards will become tougher in the future, which is just one of the reasons that landlords should […] start making a plan.
“Landlords should know that they are not alone in this. Lenders, including Shawbrook, are working hard to help drive awareness of regulatory change, support with creative product options, and offer practical support to customers and partners.”
The Government 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.
Landlords estimate that bringing the average property up to a C standard would cost them almost £2,000.
However, there is a concern that with the cost of labour and materials going up, landlords could be underestimating the cost of the work.
Cox added: “During such a challenging period for the UK in general, we remain committed to bringing together all industry stakeholders to develop the conversation around EPCs, and to make real progress towards our shared goals”.
