Four in five landlords (80%) have already carried out some remedial works to properties in response to new energy efficiency requirements, new research has indicated.

Findings published in a report by BVA BDRC also indicated landlords have made changes in anticipation of future Government measures and action in this area.

Of those who have made change, 52% said they had carried out works at the minimum cost required to comply, while (38% said they had carried out works to maximise the long-term value of their property. The research also revealed there has been a drop in the number of landlords saying they would not carry out any works and seek to sell or not re-let – down from 20% in the last quarter to 13% in the latest.

Landlord owners were also asked how many currently owned a property below an Energy Performance Certificate (EPC) level of E, with 19% saying they had one or more in this bracket, while 78% said all their properties were above E, and 3% didn’t know the EPC rating of any of their properties.

The research, comprised of 683 online interviews with landlords, was undertaken by BVA BDRC on behalf of Foundation Home Loans, between March and April this year.

Managing director (commercial) at Foundation Home Loans, George Gee, commented: “These latest survey results around EPC levels, landlord understanding and action, show a clear intention by the vast majority to ready their properties for future measures and Government legislation, and a positive intent, particularly when it comes to staying invested and not selling up if the property is not currently at the required level.”

According to the findings, there has also been a marked increase in awareness of the anticipated future EPC level requirements, now believed by many in the industry to likely be a minimum level of C and above for all rented homes by 2028.

Although this has yet to be officially confirmed, the research revealed 85% of those surveyed were aware and fully understood the details, up from 65% in the last quarter of 2022. The research also showed that 12% said they were aware and didn’t understand it, a figure down from 25%, while only 3% were not aware at all – a figure down from 9%.

“Awareness and understanding of the EPC requirements is on the up, and I suspect this has much to do with the concerted information campaign our industry has been involved with, drawing attention to this issue and what landlords may have to do for those properties that do not currently make the EPC grade,” added Gee.

“It is interesting that – at the moment – there is a clear suggestion from landlords they are going to fund any remedial works required via savings. Indeed, 80% have already carried out some work already. However, while the majority will fund the work from savings, some landlords may need to raise additional funds from their rental property by way of refinancing.

“If that is the case, and we have a large number of portfolio landlords needing to fund works across a much broader range of properties, then it may well be they look to their mortgage or other loans in order to meet these costs.”

Share Story: