The lack of requirements for the Energy Performance Certificate (EPC) and upcoming regulatory requirements may hinder government efforts to improve energy efficiency within the private leasing sector.
This is based on the latest purchase report from Mortgage Works. A poll of 1,000 UK landlords showed that nearly two-thirds (62%) were unaware that owning an EPC was a legal requirement.
As for details of energy efficiency requirements by 2030, only one-third (33%) know this is C-level. Nearly three-quarters (73%) of landlords also don’t know the date proposed when the new regulations came into effect.
Research shows that landlords will value help helping understand new regulations and advice on how to best pay for property upgrades. Half (50%) of landlords said they would benefit from grants and financing options and financing options to cover the improvements needed.
The survey also shows that while 45% of properties are rated as D or lower for properties to bring some or all of their properties to the EPC-C rating of the government deadline, it accounts for a quarter of all landlords (28%) plan to sell.
More than half (54%) of landlords who intend to upgrade their property have been waiting until the government consultation is over or becomes law before action is taken.
Nearly two-thirds (63%) of landlords are unsure how much they need to spend to raise their property to an EPC-C rating. More than one-fifth (21%) think they need to spend as much as £6,632 on average based on the current value of the property.
More than a third (37%) of landlords believe they need to raise their rents to cover their fees
Doing the required work can also cause interruptions to varying degrees of the tenant. According to the survey, 17% of landlords will need to evict tenants to complete these projects, presumably where these projects will be so invasive that they are unsafe.
Once Article 21 is abolished, the landlord has to evict the tenant’s limited rights and a major dialogue has been held. Therefore, it may be that the landlord is not aware of renovation as a reason to evict tenants.
Action Point
Mortgage work calls for addressing three areas to ensure that government ambitions are realized and fully supported.
To support effective implementation, more time should be left between the completion of the EPC reform and the new minimum energy efficiency standards regulations.
Based on phased implementation, this implementation should first face the lowest energy saving performance and allow the capacity of the retrofit department to be established over time. The initial requirement should upgrade the EPC E attribute to EPCD between 2030 and 2030. Then, it is required to transfer the EPC D attribute to the EPC D attribute to achieve the EPC C target by 2033 or above.
Rethinking individual country cost caps – setting the maximum landlord costs on improvements – currently £15,000. Mortgage work insists that this is too high and believes that the cap should be reconsidered and replaced with a way to recognize the complexity and diversity of the situation in UK housing stock and owners.
“Improving the energy efficiency of private rental homes is important, but the significant logistical and financial challenges of upgrading 2.5 million properties must be acknowledged,” commented Dan Clinton, head of mortgage work.
He added: “It is crucial to achieve a proper balance between environmental progress and housing stability. To protect ongoing investments and protect tenants from higher rents or reduced supply, landlords need clear guidance, adequate support, and sufficient time to make their properties greener.”
