Tenant group claims landlords can easily afford EPC upgrades

Reply to the comment left by Freda Blogs at 14/06/2025 – 15:03
I am very happy to give up some of my unpaid time to have a meeting with Generation Rent.
I would really like to understand why they seem to have such negative ideas re all landlords.
What is their business objectives or mission in life?
Do they only seek out negative comments from tenants?
Or are the surveys etc. they use to gather information to satisfy their core aim, biased in some way ?

Reply to the comment left by JeggNegg at 14/06/2025 – 13:32
Jegg, there was no reason given.

Reply to the comment left by Desert Rat at 15/06/2025 – 19:21
I wonder why?

Reply to the comment left by Desert Rat at 13/06/2025 – 19:34
On:

“Quote: (It’s not really a question of if a landlord CAN theoretically afford to make capital improvements (EPC upgrades), it’s whether it makes any financial sense to do so. In the current climate it probably makes far more sense to simply sell up.”

Whether it makes sense to sell up depends upon your personal circumstances. This is capital investment and the capital has to be serviced: If you run an incorporated property business it may make financial sense to invest in upgrades; I don’t, I’m an unincorporated small portfolio landlord (like the majority).

Steve Rose has been educating me on this thread (thank you) on what it takes to get an EPC exemption. Today of course I can continue to rent out a band D property, as can the majority of landlords. If I have correctly understood what Steve Rose posted then if my EPC upgrade (presumably for a band E property or below because today I can rent out a band D property) costs more than £3.5K then I can apply for an exemption to rent that property out, but this may rise to £15K at some unspecified date in the future.

Again, IF I understood what Steve Rose posted, I don’t have to do everything on the EPC, I just have to spend UP TO to £3.5K, and then I can get an exemption (although I don’t need one today).

But the last time (under the previous conservative government) that I took a look at my exposure, I had spent money that could be expected to improve the energy performance of my property, even though the EPC assessor hadn’t listed the specific improvements on my EPC; but there was no prospect of my using this improvement to improve my EPC, by for example going back and having a discussion with my EPC assessor, because the date when I made the improvement fell before the range of dates when any expense on improvements would be included as part of the expense calculation for the EPC, or an exemption from the system. So what this taught me was that you should DO NOTHING until you know what the ultimate EPC system is.

So the real question is of course whether it makes any financial sense to make EPC upgrades. For an incorporated landlord it probably does make sense if you can target a group of affluent renters who are likely to be attracted to band A, B or C properties. These renters will of course be paying more rent and they may or may not have lower energy bills, depending on whether you have installed for example photovoltaics, airtight windows and doors, heat-recovery ventilation and underfloor heating along with your air-source heat pump for maybe £30-50K. Otherwise the tenants may have both higher rents AND higher energy bills.

These tenants will probably also have higher personal levels of income tax because for most of them their housing costs will push them into the higher income tax bands. But that’s fine, markets benefit from choice and for those incorporated landlords chasing these rich tenants who don’t have to worry about their tax bills because they are, for example train drivers being paid £70K for a 4 day week with job security because they are unionised, then good luck to you.

But if I’ve correctly understood the situation on exemptions, then for a small portfolio landlord the best advice is to DO NOTHING OTHER THAN THE MINIMUM TO BE COMPLIANT WITH YOUR OBLIGATIONS; by for example having a gas-safety certificate, EICR and band D EPC. Otherwise, what is likely to happen to you is that you will spend money, the goal posts will be moved, and both you and your tenants will be penalised by the tax system.

I THINK I have understood the system for exemptions from upgrading your EPC.

But if I have understood then you do have to wonder about the wisdom and competence of government when for the majority of landlords the best advice is DO NOTHING. At the moment there isn’t much to choose between the main parties on this; both labour and conservative have attacked landlords, the SNP were even worse in Scotland.

Reply to the comment left by Beaver at 16/06/2025 – 11:32Beaver, I’ve already done the basic EPC upgrades and have most of them to a C. I’m not spending a fortune to save a tenant a few pounds a year.
I’m also an un incorporated smallish landlord. I t think we have about 16 houses.
At 58 years old, I’m not in it for capital appreciation, Its so as I can retire at 60, Im fed up working 12 hour s a day. The people in my will can fight over who gets whatever is left.
I’ve no intention to do anything else until the government decide what the next phase of the EPC is going to be like.
If they decide that my EPC C houses are no longer good enough then I will sell them and they can worry about housing the tenants

Reply to the comment left by Desert Rat at 16/06/2025 – 15:06
If you’ve got about 16 houses your portfolio is a long way bigger than my portfolio and that of the majority of small portfolio landlords. Being of a similar age to you I suspect that I have a similar outlook, although I might be looking at the gifting rules before I die and allowing the kids to deal with the CGT issue.

I would be tempted to ask for whatever insight you might be able to offer over the cheapest or quickest way to get from a band D to a band C as you appear to have done a lot of it. However, the property 118 news team have just posted something about the EPC rules changing at this thread:

https://www.property118.com/landlords-face-soaring-costs-and-epc-downgrades-under-new-rules/

Like you I have no intention to “…do anything else until the government decide what the next phase of the EPC is going to be like.” This thread suggests that “Experts warn that, alongside rising costs, the new EPC system may also cause some homes to drop an EPC band.”

Reply to the comment left by Beaver at 17/06/2025 – 11:09

I have a contact who get u from EPC D to C without the humongous cost these assessors are telling you, very cheap to work it out for u, does it more for passion, than money. I’ve spoke to him & knows his stuff:
James Tanner
02033255066
http://www.jtannerproperties.co.uk

Reply to the comment left by Beaver at 17/06/2025 – 11:09
Beaver, I’ve just done the basics so far and managed to get all but 1 to a C. Finding a good EPC assessor that will work with you is paramount.

Some will assume in your favor if you can provide evidence, some will not. Try to be there when they visit and provide information about insulation, windows, etc.

Max out loft insulation, double glazing all over (I have secondary glazing in 1 house, but no idea if that adds to the score as it has Solar panels, but is still a C76. Good quality A rated gas boiler, when they were no longer worth repairing, TRV’s Programmer, room thermostat for the heating and LED lights in all fittings.

Best bit of advice I could offer is, find a good EPC assessor and call Mick Roberts guy. I’m going to save his contact details, but I think I already know what my 1 remaining D house needs and the cheapest option is 1 years rent under the current rules

I’ve no idea how things are going to change over the next 10 years, maybe next year my EPC C’s will no longer be valid due to the way they are calculated.

I’m doing nothing else until I know what is the benchmark and then I’ll decide if I will keep or sell my houses.

If I can keep them for 10 years and then the governments new rules make me sell, then so be it.

I’ll make it damn sure that I tell the tenants why I am selling their houses.

Reply to the comment left by Steve Rose at 13/06/2025 – 10:12Just checked the criteria, its if you received £36,000 and below on a means tested benefit. Unfortunately or crazily most of the benefit tenants we get receive between £36,000 and £50,000 in benefits so wont apply to those households!

Reply to the comment left by Clare Sheffield at 24/06/2025 – 16:28
Thank you to Desert Rat for sharing his experience.

But on what Clare Sheffield just posted on means tested benefits….if you are a benefits tenant, however do you manage to get £50,000 in benefits?