Estate agent warns of ‘mass exodus’ as EPC deadline nears
Jason Davies of Davies Properties in West Yorkshire says landlords will not spend thousands upgrading properties.
New EPC rules will cause a “mass exodus of landlords” from PRS if the Government doesn’t change the requirements, a letting agent warns.
Jason Davies, owner of Davies Properties based in Keighley, West Yorkshire, says it will cost too much for most landlords to ensure their properties have at least a C energy rating.
He adds that the shortage of rental properties will be made even worse by the EPC regulations, as landlords decide to leave the sector.
The Government proposes that any new properties for rent must have a minimum of EPC C rating by April 2025, and existing rental homes by 2028. There are fines of up to £30,000 for non-compliance.
Only 38% of landlords say they fully understand what the new regulations will entail, according to research by mortgage firm MFS.
Mass exodus
Davies responded to a news report by The Neg on the MFS study by saying: “This is all well and good and I understand why the Government are wanting to increase the energy efficiency ratings within the PRS.
I think we will see a mass exodus of landlords (decent ones at that), leaving the PRS and selling up.”
“However, do they really think that the majority of landlords are going to spend (potentially) thousands of pounds, to bring their property up to the minimum standard?”
He says there are rumours the EPC rules will be delayed or “even kicked into the long grass”.
But if the Government does plough on, he says: “I think we will see a mass exodus of landlords (decent ones at that), leaving the PRS and selling up.
“The Government need to be realistic in their mission and I think they have set their sights way too high for the majority of older properties that are currently achieving mid to low ‘E’ ratings.”
I run a small letting agency on the south coast, in 2021 we lost c8% of our landlords who were worried about changes afoot regarding the reforms and EPCs. We still have perhaps 10% of our stock which I think will be difficult to get to C band on an EPC.
Every time that we are now approached by applicants looking for property because their landlord is selling up, we encourage them to write a letter or send an email to their MP. It is, of course too late, the organisations who purport to act on behalf of landlords and agents should have done something way before now but they are more interested in being in line with government for the training options than making noise on behalf us! If, however, landlords started to get letters from disgruntled constituents losing their homes, they may at least ask questions??