Nearly half (48.5%) of brokers have stated that they are not confident that they fully understood the government’s new rules regarding Energy Performance Certificate (EPC) for rental properties, a survey by Mercantile Trust has found.
The survey by the specialist bridging, buy-to-let and commercial lender, also found that 49.2% of brokers said that their property investor clients had not asked them for any information on the EPC regulatory changes.
Set to come into force in 2025, the changes to the EPC requirements will see properties covered by a new tenancy agreement needing to produce an EPC rating of C or above. All rental properties will need to meet this standard from 2028, with a fine of £30,000 per property if landlords fail to comply.
The research also revealed that 60% of brokers have not arranged a bridging loan to finance energy efficiency-related refurbishments over the past year, but 66% predicted they would do more business in this area in the coming 12 months.
Mercantile Trust has partnered with Elmhurst Energy to create a free EPC hints and tips guide for landlords and private investors to help brokers and clients deal with the EPC changes. The guide is designed to help landlords create a plan of action, establishing what needs to be done to each property in order to secure an EPC rating of ‘C’ or above.
Director of commercial operations at Mercantile Trust, Maeve Smith, said: “The new EPC regime for landlords is fast approaching and 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.
“The key message to brokers and their clients is that doing nothing is not an option. Our guide provides all the information they need to create a viable strategy to deal with the EPC issue, including outlining how landlords can finance improvements to rental properties. Bridging lenders such as Mercantile Trust have already been funding energy efficiency-related refurbishments and are ready to meet the inevitable increase in demand. The main thing is to not delay any further.”
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