More than two fifths of UK landlords are still not familiar with planned changes to EPC regulations, according to new research from Market Financial Solutions (MFS).
From April 2025, any newly let property in the private rental sector will require an energy performance certificate of C or higher, up from E currently.
The specialist lender commissioned an independent survey among 459 UK landlords who own one or more rental properties. It found that 42% are unaware that the rules around EPC ratings are changing.
Just 57% of landlords with a single buy-to-let property know about the new regulations, although this increases to 77% among those with four or more BTL properties.
Just 38% of landlords fully understand what the change in rules will entail.
The study found that there is support for the changes, with 56% of landlords stating that the sustainability of their properties is important to them irrespective of changing EPC regulations, and 48% feel the government is right to take action to improve the energy efficiency of rental properties.
But a government consultation found that less than 3% of landlords believe that the EPC rating system was fit for purpose, and MFS’s study showed that 65% want more support to help them adapt to the new regulations.
MFS’s research showed that 64% are unsure of how they would make their properties more efficient.
Just over half – 52% – would consider raising rent to pay for any renovations their property would need.
In the past year, 15% have spoken to a broker or lender about securing finance to improve their properties’ energy efficiency. Some 33% are considering selling their BTL properties before 2025 due to concerns over how they would finance the necessary renovations.
Paresh Raja, CEO of MFS, said: “Despite there being support for making the property market greener, there remains a worrying lack of awareness among landlords about the upcoming changes to EPC regulations, not to mention how they can make the necessary renovations. With the deadline for the new regulations just over two years away, it’s clear more support is needed.
“Lenders can help. By working with brokers and property investors, lenders can ensure more landlords know what the new rules entail. But they can also provide flexible financial products, which will likely prove important – in the current climate, many landlords will not have the capital available to make the changes their properties need, so flexible loans could be crucial in allowing landlords to keep pace with a quickly changing regulatory landscape.”
SOURCE: Property Industry Eye | MARCH 1, 2023 | MARC DA SILVA
Estate Agents
Comments