0:01 AM, 7th May 2025, About A week ago 6
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The Labour government should slow down EPC reform to avoid a sell-off by landlords, claims Paragon Bank.
The bank says the government’s EPC C targets for all private rented properties by 2030 risk rental supply, as landlords will simply sell up if they can’t complete the works on time.
Paragon also urge the government to revert to the original proposal for a maximum investment cap of £10,000 and a seven-year exemption.
According to Paragon Bank, 60% of properties in the private rented sector across England and Wales are currently rated EPC D or below, meaning 1.6 million properties would need to be upgraded annually to meet the 2030 target.
That would require retrofitting around 2,000 PRS properties per day to hit the 2030 deadline, or 4,000 per day to meet the 2028 target.
A survey of 900 landlords by Paragon Bank found that only 17% believe 2030 is a reasonable deadline for completing EPC works.
Louisa Sedgwick, Paragon Bank managing director of mortgages, warns EPC targets could push landlords to sell up.
She said: “Rushed legislation could cause significant disruption to a private rented sector that will already be adapting to the new Renters’ Right Bill, forcing some landlords to sell because they cannot complete works in time.
“Adopting a more considered and realistic timeframe will give landlords more capacity to adapt their properties, allow the retrofit supply chain and labour force to grow and, ultimately, will be more beneficial for tenants.”
Paragon Bank, instead, is calling for a 2035 deadline for all tenancies to meet EPC C targets.
The Bank says 2030 should still be for new tenancies and 2033 for extended tenancies.
Ms Sedgwick said: “We support the government’s net zero target and understand the need for strengthening policy and regulation to drive climate action, but we would strongly urge that a longer-term and more balanced approach is taken to allow the retrofit supply chain to grow.
“Increasing the delivery timeline and maintaining flexible exemptions allows for a smoother transition to EPC A-C in the private rented sector, without exacerbating the demand and supply imbalance, which is already expected to grow due to forecast population growth and demographic changes.”
Paragon Bank is also calling for the government to introduce a range of financial measures, such as the Warm Homes Grant, to incentivise landlords to invest in their properties.
The bank is also calling for a national skills and training programme to tackle the shortage of retrofit and construction workers needed to meet EPC targets.
Paragon Bank also points out that the North and Midlands have a higher percentage of properties below EPC C than the South, which the Bank says could lead to increased costs and more challenges for landlords in these regions.
Imout Ofhere
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Sign Up17:47 PM, 7th May 2025, About A week ago
Too late, we are selling up already, the commie government just doesn't get it.
Jack Jennings
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Sign Up21:00 PM, 7th May 2025, About A week ago
Why doesn't the government push for all homes to meet epc E instead of just the 21% of private rented homes to C? Why are attacks on landlords considered a 'victimless crime'? Why can't the government even consider the same epc for social housing? What a joke.
John Gelmini
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Sign Up11:20 AM, 10th May 2025, About 5 days ago
Most small landlords don't have the money to effect these costly upgrades ( £30,000 gbp) for a band D 3 bedroomed semi detached house in North Hertfordshire) .
Heat pump,new radiators,new pipework,insulation,structural work etc
Then there is the shortage of qualified heating engineers and the shorage of new apprentices to fill these roles as the ageing heating engineers retire.
Black Rock,Lloyds Bank via their subsidiary,Legal and General and others will only rent out their newer properties to gold plated ,creditworthy tenants .
The " decent homes standard " and Band C by 2030 are unattainable.
Then there is the question of sitting tenants who will have to move out whilst this work is going on .
If they do move out who is going to foot the bill for hotels,presumably the landlord.
All this to supposedly protect the world from "Climate Change".
On this we discover that Antarctica now has added 108 billion cubic feet of new ice which suggests we are in the Maunder or Grand Solar Minimum , (global cooling) which according to Professor Irena Zharkova of Northumbria University,will last until 2055.
The real reasons for Ed Miliband's relentless drive are as follows:
1) Force small landlords out of business
2) Increase revenue from stamp duty,VAT and VAT on conveyancing fees
3)Increase capital gains receipts on 2nd homes
4) Appease the new breed of Corporate landlord by trying to get them to finance " growth" in government pet projects
Ian Sam
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Sign Up12:29 PM, 10th May 2025, About 5 days ago
We have 30 properties, only 4 have a C rating. We reviewed the costs for improvement, we decided to start selling we put 2 on the market last month.
The future is unclear, we don't want to take any risks, so it's time to sell up.
Digger
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Sign Up23:21 PM, 11th May 2025, About 4 days ago
I only have 2 properties one of which is a solid brick terrace which will cost £15k to £18k to upgrade from D to C. All of this to achieve a maximum yearly saving on energy costs of £200 for the tenant. A saving the tenant would never actually see as I would have to increase the rent by at least £300 per month in an effort to recoup costs. My tenant of 9 years, a single mother with 3 children is perfectly happy with the property as is and benefits from me charging around £300 per month under market rent. I have now served a S21 on my tenant and intend to sell before I get further restrained by the Renters Rights Bill. Well done Labour and particularly Mr Milliband. You’re doing a great job at totally screwing up the PRS. Oh well just another desperate family for the broke Thurrock council to find accommodation for.
Gromit
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Sign Up7:18 AM, 12th May 2025, About 3 days ago
Reply to the comment left by Digger at 11/05/2025 - 23:21
... this all part of the Government plan. Why do you think the Government has introduced the Servo deal at this point in time?
It won't be long before the Government bans the sale of low EPC houses (or maybe an SDLT surcharge).