Landlords make their move ahead of EPC rules deadline

Landlords are preparing for new EPC regulations by investing in properties with a rating of C or above, it has been claimed.

A study by Rightmove reveals that a greater proportion of homes entering the rental market that were previously for sale have a rating of C or higher.

The proportion of properties with a rating of A to C that were previously for sale has increased by 16% since January 2019.

Latest government plans suggest that all rental properties should have at least a C rating by 2028.

Investors turned off

These findings are supported by a Rightmove survey amongst landlords, where more property investors said they are avoiding lower EPC rated homes.

Nearly two-thirds (61%) of landlords said they would not buy a property below a C rating, up from 47% last year,

The survey also showed that 80% of landlords are aware of proposed changes to EPC legislation, compared to 65% last year.

There may be a changing of the guard over the next few years.”

Tim Bannister, Rightmove’s property expert, says: “Upcoming changes to EPC legislation is a growing concern for landlords, however the data suggests that many are getting ahead and focusing their investment on properties that will meet the new minimum standard.

“While some may sell up, those with bigger portfolios are more likely to be planning to carry out the necessary improvements to increase the EPC rating of their lower rated homes.

“This suggests there may be a changing of the guard over the next few years, with landlords with bigger portfolios buying up lower EPC properties being sold by landlords with smaller portfolios”.

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