Majority of landlords ‘not ready’ for EPC rules challenge
A survey of landlords by mortgage firm MFS shows that only 38% know what is required under the regulations.
Many landlords are not aware of new EPC rules coming into force in just two years’ time.
That is the finding of research by mortgage company MFS, which also shows that half of landlords are planning to increase rents to pay for energy improvements.
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.
But the MFS study shows nearly four in five landlords (79%) with an active mortgage have at least one property that has an EPC rating of D or below.
Only 58% of landlords said they are aware of the upcoming changes to the rules, with just 38% saying they fully understand what the new regulations will entail.
MFS’s research shows that a significant majority (64%) of landlords are unsure of how they would make their properties more efficient to comply with the new regulations.
The survey revealed over half (52%) of all landlords are considering increasing rents to pay for any renovations.
No time to waste
“There is little time to waste. While there are reasons why landlords might not want to start renovation projects in the current climate, with inflation in double digits and rising interest rates, there is only a little over two years for them to make the necessary changes,” MFS says.
Paresh Raja, CEO at MFS (Market Financial Solutions), says: “There remains a worrying lack of awareness amongst landlords, particularly those with smaller portfolios, about the incoming changes to EPC rules that must be addressed, and fast.
“The new laws come into effect in just 27 months, so more support is clearly needed.”
Read more about EPCs.
This is all well and good and I understand why The Government are wanting to increase the energy efficiency ratings within The PRS. 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? As we draw nearer to the deadline (which rumour has it, may be delayed, or even kicked into the long grass), I think we will see a mass exodus of landlords (decent ones at that), leaving The PRS and selling up. This will only add to the existing problem that we have – an even bigger shortage of decent rental properties.
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. Didn’t they learn their lesson when they introduced The Tenant Fees Ban in 2019? It was only a minority of unscrupulous landlords and agents who should have been targeted, but instead they used a sledgehammer to crack an egg!