Landlords deliver a big boost to EPC rated homes in the PRS

Landlords deliver a big boost to EPC rated homes in the PRS

0:01 AM, 1st March 2023, About A year ago 4

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Landlords in the private rented sector (PRS) have reportedly driven a 165% increase in the number of homes that have an Energy Performance Certificate (EPC) rating of A to C.

The findings from Paragon Bank show that over the past 10 years, a focus on the energy performance of rented property by landlords has seen a 165% increase in homes that meet the criteria for A-C ratings.

The bank points to government data that reveals that England has 1.925 million rental properties with an EPC rating of A-C.

That’s an increase of 1.2 million since 2011 with the sector boasting a higher proportion of homes in the bracket compared to owner-occupation.

‘Sector is too often associated with poor quality housing’

Richard Rowntree, Paragon’s managing director of mortgages, said: “The private rented sector is too often associated with poor quality housing and that is simply incorrect.

“Landlords have driven an improvement in standards in recent years, which is reflected in the increase in energy efficient rental property.”

He added: “However, landlords and the broader industry that serves the private rented sector now need more clarity on the Government’s proposals for minimum levels of EPCs.

“It is over two years since the Government’s consultation closed and the vacuum of information or direction since has created uncertainty and confusion.

“We believe the timescales as they are currently proposed are unworkable as the infrastructure to support the upgrading of over two million properties in such a short window does not exist.”

44.5% of PRS properties are rated A-C

Paragon’s report highlights that 44.5% of PRS properties are rated A-C, compared with 42.9% in the owner-occupied sector.

It says that landlords have invested in homes that benefit from increased energy efficiency ahead of proposed Government legislation on new tenancies to meet a minimum A-C requirement in 2025.

Landlords are also investing for tenants to enjoy cheaper running costs that are associated with more energy efficient homes.

Paragon also reports a 44% increase in lending against A-C-rated rental property in its last financial year to £832.2 million.

3,130 homes would need to be upgraded to an EPC C

The bank warns that if all properties were to be upgraded by the proposed date of 1 April 2025, around 3,130 homes would need to be upgraded to an EPC C rating EVERY DAY.

However, if only working days are included, that number rockets to 4,500.

Mr Rowntree said: “The good work of landlords in providing quality homes to millions of tenants should be recognised and celebrated.

“However, a sludge of property still fails to meet the required grade and we would urge Government to support local authorities in weeding out poor quality property and landlords that aren’t up to scratch.”


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Comments

SCP

11:51 AM, 1st March 2023, About A year ago

Re: "“However, a sludge of property still fails to meet the required grade and we would urge Government to support local authorities in weeding out poor quality property and landlords that aren’t up to scratch.”
I find this offensive and ignorant. I have a beautifully maintained Victorian property in London. It is refurbished with quality fittings and white goods. I restored all the original Victorian features: fire places (with chimneys blocked and certified), tiles, and the main door, the pathway.
Unfortunately, the bricks are solid. I have spent a fortune, and the best I can achieve is D.
The other measures (such as external/internal insulation, heat pump) are not practical or far too expensive.

Windsor Woman

12:04 PM, 1st March 2023, About A year ago

Reply to the comment left by SCP at 01/03/2023 - 11:51I didn't take the same interpretation from the article as you have - the general tone is favourable to landlords (for once).
Whether or not I am correct, I took the 'sludge' to mean those landlords and properties which remain in the lower echelons of the EPC and perhaps haven't even attained a Grade E yet, per the last round of required EPC upgrade requirements in ?2018.
I don’t think anyone would take issue with you or your property - and many of us are in the same boat - and will likely stay there (if we haven’t sold up), until the Govt clarifies the proposed legislation and addresses the inconsistencies between the EPC methodology and the alleged objectives of the proposed upgrades.

northern landlord

13:06 PM, 1st March 2023, About A year ago

Agree 100%. According to Government data owner occupied homes and rental homes are pretty much neck and neck in the A, C, and D EPC stakes. In 2020 the owner occupied percentages were A/B 3.1% C 39.2% and D 46.4% while Private rented properties were A/B 2.4% C 39.4% and D 44.3% . So equal amounts of “sludge” in both camps. This gives the myth to the PRS being full of dank poorly insulated houses we are just as good as owner occupiers so why penalise us? If the Government must legislate why not move up one notch from E to D (as they have done in Scotland) instead of jumping straight from E to C. It just seems another nail in the coffin for the PRS
You can find the Government data by following this link
https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/1088667/DA7101_Energy_performance_-_dwellings.ods

Reluctant Landlord

22:36 PM, 1st March 2023, About A year ago

once someone points out that there are not enough people even certified to carry out all the work that seemingly will be required ON MASS to get even all rentals up from even a E to D, then this might be the nail in the coffin?

At no point over the last year have I seen ANY reports or offerings from the blufferment about a vast training programme to get the numbers of qualified installers underway to cope with this demand. Oh and where are all these supplies and materials going to appear from too?

At this rate I can see a statutory excuse as being 'the works booked in at the earliest date possible......15 August 2028!'

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