Landlords face hefty bill for EPC upgrades

Landlords face hefty bill for EPC upgrades

0:03 AM, 31st July 2023, About 9 months ago 6

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Landlords face a £30 billion bill to upgrade their properties to an EPC rating of C, according to new research.

Letting agents Savills reveal 2.9 million homes in the PRS need upgrading to meet proposed regulations to bring all properties to EPC C.

Though the plans have not been made into law, ministers have previously proposed that by April 2025, newly rented properties in England and Wales will need to meet a minimum EPC standard of C – tougher than the current E standard.

The regulation is also slated to apply to existing tenancies from 2028.

Landlords struggle to cover their costs

The bulk of the problem remains with older housing stock as more than two-thirds (71%) of homes built before 1950 were given an EPC below C in 2021-22, while just 12% of property built post-1995 need improvements.

Savills analysis of EPC recommendations reveals that the cost of fully upgrading properties to a maximum EPC C ranges from £8,807 (EPC D) to £27,366 (EPC G)

Lucian Cook, Savills head of residential research says: “This analysis underscores the enormity of the challenge facing the private rented sector at a time when many landlords struggle to cover their costs.”

Energy-efficiency targets could be delayed

Michael Gove recently announced that energy-efficiency targets for the PRS could be delayed due to financial pressures for landlords.

Mr Cook says the delay will reduce some of the burden for landlords but many still face challenges.

“If the programme to introduce these changes is pushed back, it will reduce some of the immediate financial pressure on landlords and give them more time to plan works effectively.

“However, current mortgage costs and the end of assured shorthold tenancies are still likely to cause some buy to let investors to re-evaluate their position, constraining supply and adding to upward pressure on rents.”


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Comments

GlanACC

10:36 AM, 31st July 2023, About 9 months ago

We don't want them delayed, we need to have them changed to a more manageable EPC D rating. Trying to bupmp 2 steps from E to C is just to expensive for so little saveing

Alan Griffin

10:38 AM, 31st July 2023, About 9 months ago

My neighbour has a 3 bed house that had the latest Air to water heat pump with radiator’s, previously, with a gas boiler it was a D with the Heat Pump it was an E, this was due to the cost of electricity today, therefore it was deemed inefficient.
It cost the lady £10000 and was not very good, she is selling.

Reluctant Landlord

13:43 PM, 31st July 2023, About 9 months ago

Reply to the comment left by Alan Griffin at 31/07/2023 - 10:38
completely proves the point of doing absolutely nothing as it depends which way the government bends.

What's the chances this will be kicked into the long grass? Then Labour will have to pick up the batton if they get in. They will realise the same problems and if they start going gung ho without looking at the whole EPC re hash (that is required), it will be a case of the same merry go round....

Jack Craven

15:27 PM, 31st July 2023, About 9 months ago

There are 20 houses in my postcode most of them privatley owned, out of the 20 only 2 has an EPC of C, 2 of them had no EPC and all the rest had EPC of D or E. I suspect that this is typical of the whole country.

JeggNegg

22:06 PM, 31st July 2023, About 9 months ago

how have Savills managed to predict and calculate the total cost of upgrading EPC's? for PRS.
1 we don't know what band we have to achieve
2 we don't know what upgrades need to be made in the computer database
3 we don't know when this has to be achieved by and therefore the costs of materials or if there might be labour shortages
4 or even how many PRS houses are in the sector
5 i have 3 small Cornish cottages/properties with cob walls, which are 24 to 27 inches thick in places. not sure external insulation works and internal will probably reduce the space to below current floor space requirements.

so i am going to wait to see and hopefully understand what i will have to do to continue to have buy to lets.

but thats not stopping me researching the options that exist now etc.as i agree we have to be more energy efficient.

GlanACC

7:46 AM, 1st August 2023, About 9 months ago

Reply to the comment left by Jonathan Cocks at 31/07/2023 - 22:06
I have 4 properties that will need to be upgraded, 2 D and 2 E. As the current cap is £10k per property, I have ringfenced this amount and stuck it in premium bonds until the times comes to upgrade. I basically propose to have a 4kw solar panels and battery fitted to each propertyas this can be done for £10k. If that then doesnt lift the property into a C then I will get an exemption.

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