Chancellor urged to consider stamp duty reforms amid EPC costs for landlords

Lenders and mortgage brokers are urging the Chancellor to “carefully consider” landlords in light of upcoming EPC regulations.

In a letter to Chancellor Rachel Reeves, the Mortgage Advice Bureau along with other lenders Leeds Building Society propose a Stamp Duty refund for homebuyers who retrofit their property to achieve an EPC rating of C or higher.

Ed Miliband says landlords must provide decent standards for private rented homes including reaching EPC C targets by 2030.

EPC upgrades can be costly for landlords

The government has set a goal that most homes achieve an EPC C or above by 2035. However, 16 million properties in England and Wales would require retrofitting to meet this EPC benchmark.

In the letter, the group tells the Chancellor that EPC upgrades can be costly for landlords: “The government intends to reintroduce the requirement for landlords to ensure their rental properties attain at least an EPC rating of C by 2030, and this is certainly positive.

“However, we must recognise that in many instances, these upgrades will be substantial, potentially exceeding previous cost caps for landlords. Careful consideration must be given to how these costs are managed, preventing undue financial burdens from being passed onto tenants via increased rents.”

More energy-efficient housing market

The Mortgage Advice Bureau proposes an idea to help make energy efficiency upgrades more affordable.

In the letter, the group suggests: “Homeowners could receive the full Stamp Duty amount back once retrofitting works have been completed.

“Alternatively, any improvements made could entitle homeowners to a rebate that covers the costs, which is taken from the Stamp Duty that has been paid.

“Moreover, homebuyers who purchase properties with an EPC rating below C and subsequently retrofit them could be eligible for a Stamp Duty rebate, with the amount determined by the improvement in the property’s energy efficiency rating.”

Ben Thompson, deputy CEO of Mortgage Advice Bureau, said: “A more energy-efficient housing market can stimulate investment in green technologies, create jobs, and reduce our reliance on fossil fuels further.

“We urge the Chancellor of the Exchequer to consider these Stamp Duty reforms to help achieve both economic and environmental goals.”