Six out of 10 landlords would rather sell properties than make them energy efficient
EPC targets could lead to shortage of rental properties as landlords would rather sell up than make costly changes to existing properties despite energy savings.
Six out of 10 landlords would rather sell their properties than improve their EPC ratings by 2025, latest research from Green Building Renewables reveals.
From April 1, 2025, the minimum EPC rating will be raised from E to C for new tenancies. This will be enforced from April 1, 2028, for existing tenancies.
FULLY PREPARED
Less than half of landlords feel fully prepared for the EPC changes and seven out of 10 (69%) say they will have to spend at least £5k on upgrading each property with a similar amount (68%) concerned about how to finance it.
Six out of 10 (63%) said they plan to sell properties rather than invest in energy-efficient measures like insulation, heat pumps and solar. In London, the number rises to three in four (75%) landlords.
Six out of 10 (62%) landlords said the new regulations had made them consider whether it was worth keeping their properties.
And while eight out of 10 (80%) knew about the potential impact a solar installation could have on their property’s EPC rating just four out of 10 (43%) 43 said they felt fully prepared for the changes.
STARTLING RESULTS
Chris Delaney, Green Building Renewables Managing Director, says: “The results from this survey are startling.
“The fact that such a high percentage of landlords would rather sell their energy-inefficient properties than improve them with technologies like solar panels and heat pumps raises some significant questions for the government and policymakers.
“80% of the buildings that exist today will exist in 2050; as a nation, we have a serious responsibility to transform our buildings and make them more energy efficient, and residential landlords have a critical role to play in this transition.”
The Neg reported yesterday how Housing Secretary Michael Gove suggested over the weekend that the Government should “relax the pace” landlords are being forced to comply with EPC rules.
He told The Sunday Telegraph that ministers were “asking too much too quickly” of landlords, after proposing a deadline of 2028 for new EPC regulations.
Like I commented yesterday in a similar article, The Government needs to seriously consider the damage that they’re doing to The PRS, which accounts for around 19% of homes in England. So what about the other 81%?! This is like patching up a long road with loads of potholes – instead of resurfacing the whole road, they’re just patching up here and there and it ain’t working!
Hardly a suprise; I commented on here only a few days ago about a report on this news outlet where they were lauding a Rightmove report claiming landlords are investing in making their properties compliant.
I said that was rubbish at the time and I believe this new survey is nearer the truth.
75% of London Landlords would sell rather than upgrade? even if that figure is twice the reality, this is yet another own goal by Government by their relentless attacks on private ”rouge” landlords. – I know because I am one!
Maybe all EPC improvement bills should be sent to ”Chris Delaney” (above) who seems to be in selling mode – rather than reality.
I am out as soon as I can get out – enough is enough.
I don’t see anything “startling” about the results of this survey. I was with one landlord last week and the recommended improvements to attain a C rated EPC on a three bedroom stone country property will cost £42k. The benefit of any energy saving is £1422 which will take 29 years to pay off and all that benefit goes to the tenant unless there is a substantial rent rise. The rent rise swallows the saving to the tenant so financially no one is better off. Sell the property to a homeowner and they do not deed to do any improvements. I will throw this out there that the EPC regs will be “reviewed” in the next six months and C grade or £10k spending and exemption will not happen. Gove is already running scared as the rental crisis intensifies.