‘Six out of 10 landlords to sell due to EPC upgrade’
UK's largest mortgage broker says many BTL landlords fear upgrade costs will be too much to bear financially despite rumoured deadline extension.
Some 60% of landlords say they would consider selling up if they were forced to make expensive EPC upgrades while a third (28%) reported that the costs alone couldn’t be coming at a worse time, research from Mortgage Advice Bureau (MAB) reveals.
Meanwhile a similar number (30%) say they’re most likely going to pass any costs onto tenants.
With an expected deadline of 2028 for landlords to retrofit their properties to a minimum of an EPC C rating, MAB says that there is a need for more clarity regarding the help that is available to landlords.
Currently, landlords must have a minimum energy efficiency rating of an E to be able to let a property out, with exemptions for those properties which would cost more than £3,500 to retrofit to this level.
It is expected that the Government will announce a similar exemption for the new enhanced level, but with the additional cost involved to go from an EPC of E to C. This exemption is due to be set at £10,000, with the average home expected to cost £4,700 to retrofit to this level.
There clearly needs to be more advice, guidance, and help for landlords.”
According to the research, a quarter (25%) said it was likely they wouldn’t be able to afford the changes, while a third (34%) said it was quite likely they would sell their property instead of upgrading it.
With many landlords facing a hefty bill and a race against time, a fifth (21%) of landlords are hoping that more help will become available to combat the cost of energy performance upgrades.
Ben Thompson, MAB Deputy CEO, says: “The need for more efficient housing is obvious.
“However, for landlords, the proposed changes to upgrade to at least a C instead of the current E will mean they face having to foot large retrofitting bills.
“Even if (as rumoured recently) the Government delays the proposed deadline to 2028 for all rental properties, it isn’t long to find the money needed for the upgrades. There clearly needs to be more advice, guidance, and help for landlords.”
Rents will join SPACEX. I offloaded any old houses 18 months ago and only kept more modern 1990s+ ones band C/D. This will backfire as usual, just like all the deposit bans for pets and non-billing of tenants etc; lead to astro rents..
Mick I agree but the government and the opposition are not listening. They seem to have a hate agenda against landlords and have totally ignored the fact that 19% of households are going to be hit with either no home or a home they cannot afford. This is not a climate issue if it was you would not be able to sell a house unless it met the EPC regulations it is a political kick the landlords issue.
Every day we have desperate people in the office looking for homes for many different reasons and it is so sad as there is nothing available locally. The other side is if people cannot move it hits worker flexibility which has an impact on the economy.
Perhaps the industry leaders need to stand up and shout louder.
Yes very good words by u.
There clearly needs to be more advice, guidance, and help for tenants. Cause they will end up paying for this. 60% of Landlords don’t increase rents to current market rents. We will have to now if this comes in. So my tenants paying £500pm for £850pm house who have lived there 20 years, I’m going to have to say Sorry you now got to pay £850pm like all new tenants, an extra £4200 per year for u as the Govt said u want & need nearly New Build standards. And if the Govt want even more, then you may be looking at £1000pm. Even though the Govt are paying £500pm less than this with the LHA Benefits for your home.