UK landlords say they were in the main prepared for the government’s proposed Energy Performance Certificate (EPC) legislation before the Prime Minister’s u-turn last week.
The proposals, which have now been scrapped, required landlords’ rental properties to adhere to a minimum EPC rating of C by 2025 for new tenancies, and for all rental properties by 2028.
Research from Shawbrook found that 80% of UK landlords said they were already prepared for the 2025 EPC regulation deadline. Of these landlords, 30% said their properties already have an EPC rating of A-C, while 50% said they had plans in place to improve their EPC rating before 2025.
Meanwhile, 17% said they were not prepared and had no plans to improve the EPC rating of their property, while 3% said they had not heard of the regulation.
46% of landlords have spent between £500-20,000 on improving or investing in their property in the last year, with the mean average amount landlords have spent being £25,148. This average amount rises to £37,164 for London-based landlords.
20% said that cost of labour for property improvements was a key concern for their rental properties over the next six months, while 16% said EPC regulations were a concern.
Shawbrook said the proposed regulations have also prompted many landlords to be more energy conscious when investing in new property, with 28% prioritising buying newer, more energy efficient properties in the next six months.
When asked about previous rumours of the initial EPC regulation deadline moving to 2028, 31% said it would give them more breathing space to complete improvements across their portfolio, while 29% said they will progress with their improvement plans regardless.
Emma Cox, managing director of real estate at Shawbrook Bank, said: “Scrapping the impending EPC regulations might free up capital in the short term for landlords who haven’t yet invested in improving the energy rating of their properties. But while policies shift, climate change is going nowhere, and energy efficient buildings will remain central to net zero plans.
“Rules might not be changing as soon as 2025, but professional landlords with modern, energy efficient stock will be in the best position to attract tenants, as well as reduce potential voids, and importantly, be prepared for future legislative change.”
