Landlords are not prepared for EPC rules which risks government targets

A massive knowledge gap among PRS landlords about energy performance certificates (EPCs) could undermine the government’s push to improve the energy efficiency of rented properties, a survey reveals.

According to a new report from The Mortgage Works, a survey of 1,000 landlords found that 62% are unaware that holding an EPC is a legal obligation.

Also, only 33% correctly identified that rental properties in England and Wales must achieve a minimum EPC rating of C by 2030.

Alarmingly, 73% of landlords are uninformed about the proposed timeline for these regulations, leaving many unprepared with just five years until the rules apply to all rental homes.

Limited landlord EPC awareness

The lender’s head of buy to let, Dan Clinton, said: “Changes to minimum energy efficiency standards have been under discussion for some time but our research shows limited landlord awareness with some looking to exit the market.

“Policymakers should recognise the vital role landlords play in supporting economic growth through labour mobility and for providing homes to low-income households.”

He added: “Improving the energy efficiency of private rented homes is important but the significant logistical and financial challenges of upgrading 2.5 million properties must be acknowledged.

“To safeguard continued investment and protect tenants from higher rents or reduced supply, landlords need clear guidance, adequate support, and sufficient time to make their properties greener.”

Landlords sell over EPC rules

Landlords are seeking support to navigate these changes with more than half (55%) expressing a need for guidance on cost-effective property upgrades.

Also, 53% want clarity on the new energy efficiency standards.

Another 50% say they would benefit from information on available grants and financing options to fund necessary improvements.

While 45% of those with properties rated D or below plan to upgrade to an EPC-C rating by the deadline, 28% intend to sell their properties instead.

PRS EPC upgrades cost

TMW also found that 54% of landlords planning improvements are delaying action until the government’s consultation concludes or the regulations are enforced.

That will, the report says, potentially strain the availability of tradespeople and materials if a short implementation period is imposed.

Financial uncertainty is another hurdle, with 63% of landlords unsure of the costs required to meet the EPC C standard.

Of those estimating costs, 21% believe an average of £6,632 per property will be needed.

To cover these expenses, 37% of landlords plan to increase rents, either before or during the upgrade process, while 38% will use personal savings.