EPC C targets push landlords towards the exit

Nearly a quarter of landlords plan to sell or reduce their property portfolio due to EPC C targets, according to a new survey.

Research by Goodlord suggests that, following the King’s Speech announcement of an Energy Independence Bill, many landlords are now weighing up the cost of upgrading properties to meet EPC C targets.

The news comes alongside the government announcement that all private rented properties need to meet EPC C targets by 2030.

More than half of rental properties below C

According to the data, nearly a quarter of landlords (23%) said they plan to sell part or all of their portfolio as a result of changes to EPC requirements, and a further 32% remain undecided on their next step.

Emily Popple, director, Landlord Experience at Goodlord, said: “The King’s Speech has put energy efficiency firmly back on the agenda for landlords. While many understand the long-term direction of travel, our data shows a significant proportion are still weighing up whether the costs of upgrading stack up – with some already planning to sell.

“With more than half of rental properties still below EPC C, the scale of work required is substantial and presents a significant logistical challenge.

“Delivering that level of change across multiple properties will take time. Landlords require clear guidance and the right support to ensure they are able to plan and invest with confidence.”

A previous Goodlord poll found that 46% of landlords and 34% of agents believe that raising minimum energy efficiency standards would negatively affect the rental market.

Substantial and costly upgrades

However, as previously reported on Property118, Propertymark has raised concerns that the costs for landlords under the Warm Homes Plan will be high.

Timothy Douglas, head of policy and campaigns at Propertymark, previously said: “While the ambition of the Warm Homes Plan to improve energy efficiency and tackle fuel poverty is acknowledged, the proposals as they stand are deeply concerning for landlords and agents across both the residential and commercial sectors.

“In the private rented sector, landlords are being asked to deliver, in many cases, substantial and costly upgrades to reach EPC C by 2030, yet this is being imposed without clear, long-term funding commitments, realistic delivery timescales, or sufficient flexibility for older, complex, and hard-to-treat properties.

“A phased and realistic approach would allow landlords to maintain the Decent Homes Standard, manage costs effectively, and contribute meaningfully to the UK government’s ambition to achieve net zero by 2050.”