Landlords ‘given longer’ to meet deadline for EPC changes
A new target date of 2028 for landlords to achieve an EPC C rating has been set by the Government, according to the Daily Telegraph.
Landlords are set to be given an extra three years to meet the Government’s EPC rating targets, it has been reported.
It appears ministers have listened to lettings industry leaders warning that a deadline of 2025 was unrealistic.
Now, the deadline for new lettings to have a minimum C rating is going to be 2028, and this date will apply to all lettings, according to the Daily Telegraph.
Previously, The Neg reported warnings that landlords will be forced out of the market, especially when faced with fines of up to £30,000 for non-complicance.
Jason Davies, owner of Davies Properties based in Keighley, West Yorkshire, predicted a “mass exodus of landlords” from PRS if the Government stuck to its original plans.
Trade body Propertymark and the NRLA suggested the 2025 target date was unworkable, and had lobbied the Government hard to make it later.
A maximum spend cap for landlords making improvements to properties is expected to be set at £10,000.
Feeling pressure
Rik Smith, head of tenancy services at rent guarantee platform Goodlord, says: “I’m sure the market will welcome the proposed extended deadline to get properties up to standard, but there’s an enormous amount to do before then.
“Landlords across the market are already feeling pressure on many fronts, including rising mortgage rates, so we don’t want a lack of required infrastructure or not fit-for-purpose guidelines to lead them into leaving the sector.”
Tom Goodman, MD at tenant referencing service Vouch, says: “The last thing the sector needs is another push factor encouraging landlords to sell-up – there is already too tight a squeeze on rental stock.
“What we need now is a balanced and supportive approach from the Government on next steps, so that landlords are incentivised to make these upgrades and can afford them.”
I think that the majority of landlords in the PRS are still going to be reluctant to spend (potentially) thousands of pounds to upgrade their properties – pushing back the deadline is merely pushing back the problem (in the landlords’ minds) and kicking it into the long grass (hoping that it goes away). A great number of landlords and letting agents have very little confidence in The Government – do you blame them? After the introduction of The Tenant Fees Ban 2019 – instead of concentrating their efforts on targeting just the rogue agents and landlords, who were abusing their position to charge fees.
The blanket ban on tenant fees, led to increased management commissions and fees being charged to landlords by letting agents and as a consequence, to recoup some of the charges, landlords have been increasing rents, in some cases to unprecedented amounts and so, ultimately, the poor tenants are the ones who are suffering financially.
As I commented on a previous article, more and more landlords have had enough of all the legislation and rules in The PRS, introduced by The Government over the years and so we’re seeing decent landlords with good quality homes, selling their properties and exiting The PRS. This problem will only fuel the fire as we are left with fewer and fewer decent homes available for tenants that will be at unaffordable rents for most and only a fortunate few will be able to comfortably afford them.
The Government needs to have a re-think on their strategy and realise that in 2022 around 19% of homes were rented in The PRS in England. So what about the remaining 81% of homeowners? What are their plans to target these? Surely they should have dealt with the bigger problem first, but that would be too logical. I’m not against zero carbon emissions, I’m all for it, but I think they need to be realistic in their approach.
Our Victorian solid brick built houses are classified as D despite having new gas boilers, extra loft insulation & modern double glazing. Fortunately we have fixed rate mortgages although they will end soon. We haven’t increased rents for 6 years as our tenants have been struggling financially and we are working closely with them. Extending the deadline for EPC rate C is neither here nor there, we will have to sell up before then as C isn’t feasibly possible. These are the realities that the politicians ignore because they are obsessed with impossible net zero targets and the fallacy that all landlords are crooks. The inevitable UK housing catastrophe is fast approaching and ignorant bigoted MPs and councilors are solely responsible for creating it.
Rik Smith,
You are cooking. We don’t welcome this change at all.
I’ll keep repeating this, as applies to many attacks on us lately.
It’s still not happening.
They/we not gonna’ be able to retrofit these 1920 houses while tenant is living there & on the cheap rents a lot of tenants are paying.
Govt has to stop penalising tenants AFTER they’ve moved into their home.
Who’s paying for this then?
Cause if tenants are paying cheap rent ie. Landlord looking after em, & then maybe £5000 or £30,000 to upgrade from E to a C, Landlord then says I can no longer look after u with cheap rent. Cheap rent doesn’t pay for these outgoings, I’ve now got to charge u what the Landlord is charging his better off tenants up the road who’s paying more to live in that New build.
I’ve got to start telling tenants soon You can’t live here past 2028 anyway, Govt say u can’t if EPC not a C. And your rent doesn’t pay for a C.
Has anyone asked the tenants what they want? We know they want the better house, but when u give them choice I can give u New build for £1000pm or EPC C for £900pm, or still decent house EPC D but not New build standards for £700pm or £550pm I know what virtually all my tenants say.