Rishi Sunak’s decision to scrap tougher EPC rules for rented properties may spark anger among some landlords following new research that four in five of them had already made preparations to meet the former minimum ‘Band C’ requirement.
Lender Shawbrook spoke to over 1,000 landlords and found that 80% said they were already prepared for the 2025 EPC regulation deadline and of these, 30% said their properties already have an EPC rating of A-C, while half said they had plans in place to improve their EPC rating before 2025 when all new tenancies were due to be included in the new regulations.
U-turn
Some landlords may view this week’s U-turn as a waste of their money – Shawbrook found that nearly half of the landlords it quizzed had spent between £500 and £20,000 on improving or investing in their properties over the past year, spending on average some £25,000 across the UK and £37,000 in London.
The now scrapped EPC proposals had also prompted many landlords to be more energy conscious when investing in new property, with over a quarter prioritising buying newer, more energy efficient properties during the next six months.
“Scrapping the impending EPC regulations might free up capital in the short term for landlords who haven’t yet invested in improving the energy rating of their properties,” says Emma Cox (main picture), Managing Director of Real Estate at Shawbrook Bank.
“But while policies shift, climate change is going nowhere, and energy efficient buildings will remain central to net zero plans.
“Rules might not be changing as soon as 2025, but professional landlords with modern, energy efficient stock will be in the best position to attract tenants, as well as reduce potential voids, and importantly, be prepared for future legislative change.”
