Lettings agents and mortgage brokers are expected to play a central role in preparing landlords for stricter Minimum Energy Efficiency Standards as uncertainty and rising retrofit costs risk slowing progress.
According to Neil Cobbold (pictured), commercial director at Reapit, the sector must act as both educator and coordinator as landlords face the shift towards higher EPC standards across the UK.
Speaking on Eco Approach’s recent webinar, Green homes – how can landlords prepare for stricter energy efficiency standards?, he said agents and brokers are well placed to help landlords understand their obligations, explore funding routes and prioritise the improvements needed across their portfolios.
RETROFITTING OPPORTUNITIES
After the webinar, Cobbold said: “Agents have an important role to play. With access to advanced EPC reporting tools, they can easily identify the properties in their portfolio that need retrofitting, and they also have access to trusted contractors who can carry out the work.
“By partnering with specialist brokers, agents can further access advice on a range of financial products that allow landlords to improve the energy efficiency of their properties, giving landlords a professional support network to help them reach the higher EPC C standard.
“Agents who embrace this role could unlock a significant new revenue stream. With the cost of the PRS retrofit programme estimated at £24bn, those who combine technology with industry expertise stand to earn substantial commission while strengthening long-term relationships with landlords.”
THE SCALE OF THE TASK
Reapit’s analysis of a representative sample of agency-managed PRS properties suggests that more than half are not yet meeting the proposed energy-efficiency benchmarks. The firm found that 51.5% of homes in its sample were below EPC band C, with 17.4% rated E, F or G.
Reapit estimates that approximately £24bn of retrofit investment would be required for privately rented homes across Great Britain to reach the government’s proposed minimum standard. Current proposals would require PRS properties in England and Wales to achieve EPC grade C by 2030, with Scottish landlords working to a 2033 deadline under draft plans.
RISKS OF INACTION
During the webinar, Cobbold warned that hesitation across the PRS is being fuelled by rising costs, unclear timelines and limited retrofit capacity. He described the situation as a “perfect storm” in which uncertainty is discouraging landlords from taking early action.
He said: “There is a nervousness over timeframes, which is creating a supply and demand issue, which in turn causes extra financial pressure for landlords who are looking for a solution. All of this uncertainty makes it more difficult for us to do what needs to be done – make these homes more energy-efficient and help people not only in making their homes better but actually taking them out of fuel poverty.”
Cobbold added that ongoing delays to government consultations and a lack of clarity on enforcement and exemptions are exacerbating the problem. Many landlords are being advised to hold back until definitive rules are published, but this risks compressing demand into the years immediately before the deadline, increasing costs and creating competition for a limited pool of skilled tradespeople.
He warned that this growing backlog could heighten compliance risks and leave landlords exposed if they delay too long.
With significant investment required and deadlines approaching, Cobbold argued that agents and brokers have an opportunity to step into an advisory role that supports both landlord clients and the wider transition to a more energy-efficient PRS.
