Landlords’ lack of knowledge about energy rules could slow down Government plans to make rental homes greener, research from The Mortgage Works found.
Out of 1,000 landlords asked, nearly two thirds (62%) did not know having an energy performance certificate (EPC) is a legal requirement.
Only a third (33%) knew about the target to reach an EPC-C rating by 2030, and almost three quarters (73%) were unsure when new rules would start.
Over half (55%) said they wanted help to work out the best value upgrades and understand what the new rules mean.
Half (50%) said they would benefit from information on grants and finance options to pay for the work.
Among landlords with properties rated D or below, 45% said they would try to improve at least some of their homes to an EPC-C rating by the deadline.
More than a quarter (28%) said they planned to sell up.
Over half (54%) of landlords planning improvements said they would wait for the Government consultation to finish or for the law to change before starting any work.
Nearly two thirds (63%) of landlords did not know how much it would cost to make their properties EPC-C.
Just over a fifth (21%) thought they would need to spend £6,632 on average.
Over a third (37%) said they would need to raise rents to cover the costs, either before or during the work.
Meanwhile, just under two fifths (38%) would use savings or current account money, while 17% would apply for a further advance.
Nearly two in five (39%) landlords said they would offer a temporary rent reduction to make up for the inconvenience.
A similar number (39%) said they would try to do the work in phases between tenancies, but this depends on how much time is allowed for upgrades.
Additionally, 17% said they would need to evict tenants to get the work done, likely where it would not be safe for tenants to stay.
The Mortgage Works called for more time between finishing EPC reform and new standards coming into force, a phased approach starting with the worst homes, and a rethink on the £15,000 cost cap for works.
The team said the cap should recognise the different types of homes and landlords’ own situations.
Dan Clinton, head of buy-to-let at The Mortgage Works, said: “Changes to Minimum Energy Efficiency Standards have been under discussion for some time but our research shows limited landlord awareness with some looking to exit the market.
“Policymakers should recognise the vital role landlords play in supporting economic growth through labour mobility and for providing homes to low-income households.
“Improving the energy efficiency of private rented homes is important but the significant logistical and financial challenges of upgrading 2.5 million properties must be acknowledged.”
Clinton added: “Striking the right balance between environmental progress and housing stability is crucial.
“To safeguard continued investment and protect tenants from higher rents or reduced supply, landlords need clear guidance, adequate support, and sufficient time to make their properties greener.”
