Nearly 50% of landlords and brokers don’t understand EPC rules

Nearly 50% of landlords and brokers don’t understand EPC rules

0:05 AM, 15th June 2023, About 10 months ago 9

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A lack of awareness among brokers and their PRS landlord clients of the proposed changes to Energy Performance Certificate (EPC) requirements has been revealed in new research.

The findings from Mercantile Trust of more than 150 brokers, found that 48.5% of brokers said they were not confident that they fully understood the government’s proposed new rules on EPCs for rental properties.

In addition, nearly half (49.2%) of brokers said their property investor clients had not asked them for any information on the EPC regulatory changes.

There’s no deadline currently for the changes to EPC requirements which might be in 2025 or 2028.

Produced a useful EPC guide

Mercantile Trust has now produced a useful EPC guide and the lender’s director of commercial operations, Maeve Ward, said: “Our research has found that brokers are seeking education and clarification around this important issue.

“Working with Elmhurst Energy, we have produced our EPC guide because everyone in the industry needs to play their part in meeting the demands of the changing regime surrounding energy efficiency.

“We encourage brokers to download the guide and share it with their property investor clients.”

She adds that the guide provides all the information needed to create a viable strategy to deal with the EPC issue, including outlining how landlords can finance improvements to rental properties.

Rental properties will need a minimum EPC rating of C or higher

Once the new EPC rules take effect, all new rental properties will need a minimum EPC rating of C or higher with the new standard covering all tenancies a few years later.

Non-compliant landlords could be facing fines of up to £30,000 per property.

Mercantile Trust’s research also highlighted that 60% of brokers had not arranged a bridging loan for energy efficiency-related refurbishments within the past year.

However, 66% of brokers are anticipating increased business in this area over the next 12 months.

The new guide aims to assist landlords in developing a plan of action to ensure their properties meet the required EPC rating of C or higher, estimating the associated costs and identifying potential financing sources.

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Seething Landlord

9:30 AM, 15th June 2023, About 10 months ago

This is Alice in Wonderland stuff, yet another report criticizing people for not understanding rules that do not yet exist.


9:35 AM, 15th June 2023, About 10 months ago

It is rumoured that the algorithm is to be changed such that electric heating (which may now be less carbon reliant) is treated more favourably and gas less favourably.

Does anyone have any comment/Intel?

With the best will in the world landlords have largely followed EPC advice to switch from electric heating and conventional boilers to condensing boilers and this advice is still being provided.

Perhaps there would be an argument in the doctrine of estoppel for HMG to abruptly reverse its position such that landlords who followed the State advice then find themselves in breach due to a shifting of goal posts.

In short the whole thing is a mess. I think this has got (almost) all of us moving in the right direction but there needs to be clarity as to how EPCs might be recalibrate and a good few years more before enforcement is mobilised. In order to implement drastic measures to improve energy conservation tenants have to be dispossessed. I don't know about others but I am philosophically opposed to asking tenants who pay their rent timeously to vacate for such works. The Government ought to be prepared to take into consideration improvement made whilst premises remain let even if not quite achieving a C.

Seething Landlord

9:55 AM, 15th June 2023, About 10 months ago

"I think this has got (almost) all of us moving in the right direction"

What is the right direction? Nobody knows.


10:01 AM, 15th June 2023, About 10 months ago

The right direction is to upgrade insulation

Seething Landlord

11:22 AM, 15th June 2023, About 10 months ago

Reply to the comment left by Trevor Leigh at 15/06/2023 - 10:01
I agree. Spending money on anything else is entirely speculative and may turn out to be counterproductive, despite what various so called experts are urging everyone to do.

LL Minion

11:32 AM, 15th June 2023, About 10 months ago


If the government don't provide the detail, then you can't do anything


7:09 AM, 16th June 2023, About 10 months ago

It shows how much of a stretch this ambition for central planning is - the technocratic agenda is so out of kilter that it needs to be briefed continually through the sector media as a form of soft diplomacy / propaganda, with the modern trappings of rules that are not rules etc.

Judith Wordsworth

9:59 AM, 18th June 2023, About 10 months ago

Make properties totally insulated and draft free and the increase in mould in properties from condensation will soon be evident.

And who will be to blame? Landlords of course


19:43 PM, 18th June 2023, About 10 months ago

Yet another attack on landlords to drive them out of the market. It's totally unfair that having to upgrade to EPC "C" only applies to landlords. It should apply to EVERY domestic dwelling regardless of ownership.

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