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0:03 AM, 25th September 2023, About 7 months ago 30
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Most UK landlords had already prepared for the government’s planned energy performance certificate (EPC) legislation, which was scrapped last week by the Prime Minister Rishi Sunak.
The legislation would have required landlords to ensure their rental properties had a minimum EPC rating of C.
The mooted deadline was 2025 for new tenancies, and by 2028 for all tenancies.
Now, a study by Shawbrook Bank using its internal data has found that 80% of landlords said they were already prepared for the 2025 EPC deadline.
Of these, 30% said their rental properties already had an EPC rating of A-C, while 50% said they had plans in place to improve their EPC rating before 2025.
Emma Cox, the managing director of real estate at Shawbrook Bank, said: “Scrapping the impending EPC regulations might free up capital in the short term for landlords who haven’t yet invested in improving the energy rating of their properties.
“But while policies shift, climate change is going nowhere, and energy efficient buildings will remain central to Net Zero plans.”
She added: “Rules might not be changing as soon as 2025, but professional landlords with modern, energy efficient stock will be in the best position to attract tenants, as well as reduce potential voids, and importantly, be prepared for future legislative change.”
The study also found that 17% of landlords said they were not prepared and had no plans to improve their EPC rating, while 3% said they had not heard of the regulation.
And nearly half (46%) of landlords had spent between £500 and £20,000 on improving or investing in their property in the last year, with the average amount being £25,148.
This figure rose to £37,164 for London-based landlords.
A fifth (20%) of landlords said that the cost of labour for property improvements was a key concern for them over the next six months, while 16% said EPC regulations were a concern.
The study also showed that the proposed regulations had influenced many landlords to be more energy conscious when buying new properties, with 28% prioritising newer, more energy efficient properties in the next six months.
And when landlords were asked about their views on previous rumours of the initial EPC deadline being moved to 2028, the study found that 31% of landlords said it would give them more breathing space to complete improvements across their portfolio, while 29% said they would progress with their improvement plans regardless.
The study comes at a time when landlords are facing lower profits than ever before, due to tax changes, rising costs and regulatory pressures.
According to the National Residential Landlords Association, landlord profits are at their lowest level in 16 years.
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Ian Narbeth
8:39 AM, 25th September 2023, About 7 months ago
"...80% of landlords said they were already prepared for the 2025 EPC deadline." So what? Everyone has heard of "Lies, damned lies and statistics". This is one of them.
Unless the figure is close to 100%, it means that a substantial number of properties would not meet the threshold. Even if temporary exemptions were available, landlords would be afraid of massive fines and a large number of properties would be taken off the rental market.
With an estimate of just under 5 million privately rented properties in the UK, taking about 2% out means 100,000 properties.
I suspect that civil servants have told the Government: "If you think there is a housing crisis now and that rents are too high, force this EPC policy through and matters will get much worse. You ain't seen nothing yet!"
Teessider
8:57 AM, 25th September 2023, About 7 months ago
I had four D-rated properties. Because of the proposed EPC changes, I raised two properties to C-rated.
The work required to achieve this was straightforward enough. I just had new EPCs done and corrected Ted the assumptions. £60 each. Sorted.
Ian Narbeth
9:44 AM, 25th September 2023, About 7 months ago
Reply to the comment left by Teessider at 25/09/2023 - 08:57
Bully for you but for many landlords it is not possible to raise the rating at reasonable cost and/or with a tenant living in the property. Older properties without cavity walls are particularly hard to upgrade.
If the Government had not over-regulated the PRS for years and if Councils were better-resourced and seen as more reasonable, landlords might not have been spooked. An unforeseen problem was that it might take months if not years beyond whatever deadline was set for Councils to consider the case for an exemption. If they refused it, the hapless landlord could then be faced (a) with a massive fine and (b) having to sell up because the property would not be capable of upgrading.
Philip Wright
10:43 AM, 25th September 2023, About 7 months ago
EPC certificate is not worth the money it's printed on, total useless and not a true discription,scrap it immediately
Reluctant Landlord
10:47 AM, 25th September 2023, About 7 months ago
Reply to the comment left by Ian Narbeth at 25/09/2023 - 09:44
following on from this Ian as a general point. If you did apply for an exemption and it was refused by the council does that means you are then immediately at risk of presecution because you aren't compliant or is there a period of grace to appeal/give notice to the tenant for example (if the decision is then taken to sell)
Sam
10:54 AM, 25th September 2023, About 7 months ago
I am very surprised at this survey's results.Very few landlords that I know with older properties have been able to upgrade their EPC at a reasonable cost.The fundamental idea of becoming more energy efficient is good but the the implementation of this has been poorly handled and is probably politically motivated by all parties to enhance their chances of electors votes.
Seething Landlord
11:02 AM, 25th September 2023, About 7 months ago
Reply to the comment left by Ian Narbeth at 25/09/2023 - 08:39
"I suspect that civil servants have told the Government: "If you think there is a housing crisis now and that rents are too high, force this EPC policy through and matters will get much worse."
Interesting perspective - my suspicion is that Sunak has seen sense and overruled the ideologues who have apparently infiltrated the Civil Service and whose influence became apparent with the introduction of S24, which was shown to have its origin in proposals from Generation Rent.
Morag
11:12 AM, 25th September 2023, About 7 months ago
Reply to the comment left by Philip Wright at 25/09/2023 - 10:43
You're so right. I've bought five properties in the same development, and viewed EPCs for several others, and all of them make incorrect assumptions about the construction, and give ratings between C and F, the higher and lower ratings not necessarily corresponding to the ones with for instance, new double glazing or updated heaters. It's a swizz.
roger radford
11:18 AM, 25th September 2023, About 7 months ago
I have two identical 1-bed flats in the same conversion. One was given an EPC C rating and the other a D. Go figure. The whole EPC system is not fit for purpose.
Brian Strickland
11:59 AM, 25th September 2023, About 7 months ago
We have over 200 properties in SE Essex.
I have exchanged correspondence with Ministers on this together with my MP.
I simply ask the question. Why would any self respecting business person invest £2,000, 000 (10,000) per property potentially , with absolutly no return on that investment.
We have been sitting on our hands waiting to see. A rare time where doing nothing is actualy an option. I have told the minister and MP that if we cash in our investment and leave the market 200+ families will be looking for a home . As the Mafia would say its not personal its just business. Im sincerely hoping we dont have to do that. But Starmer has already said he will reinstate it. And so it goes on.........