Most landlords are still in the dark about EPC changes, a new survey has found, raising fears that they could be blindsided when proposed new rules become law in 2025.
Only 57% of landlords with a single property and 77% of those with four or more properties in their portfolio aren’t aware of the need to get new properties up to an EPC grade C while just 38% fully understand what the new regulations will entail, according to Market Financial Solutions’ (MFS) poll of 459 investors.
Despite this lack of awareness, there is surprising support for the changes as 48% believe the government is right to take action to improve the energy efficiency of rental properties. However, a significant majority (64%) of landlords are unsure of how to make their properties more efficient and 65% want more support to help them adapt their homes
Those planning changes cite replacing lightbulbs with LED lighting (73%), loft or wall insulation (70%), new windows (68%), installing a smart meter (67%), and installing energy efficient kitchen appliances (64%).
Rents
MFS reports that just 15% of landlords have spoken to a broker or lender about securing finance to improve their property’s energy efficiency while 52% are considering increasing rents to pay for any renovations needed to comply with the new regulations.
This number falls to 42% among landlords aged 55 or over, which could point to older landlords having more capital.
CEO Paresh Raja (pictured) says that in the current climate, many landlords will not have the liquid capital needed to make energy efficiency changes to their properties.
“Flexible financial options – like bridging loans or BTL mortgages – could prove vital for landlords who are looking to keep up with a rapidly changing regulatory landscape,” he adds.
Read more about EPCs.
