Over two fifths of UK landlords are still unaware of the upcoming changes to Energy Performance Certificate (EPC) regulations, new research from Market Financial Solutions (MFS) has revealed.
The specialist lender’s findings suggested that just 38% of landlords fully understand what the change in rules will entail.
From April 2025, any newly let property in the private rental sector will need an energy performance certificate of C or higher, up from E currently.
MFS, which commissioned an independent survey among 459 UK landlords who own one or more rental properties, found that 58% of landlords are aware that the rules around EPC ratings are changing, while only 57% of landlords with a single buy-to-let (BTL) property know about the new regulations. This figure does rise to 77% among those with four or more BTL properties, however.
“Despite there being support for making the property market greener, there remains a worrying lack of awareness among landlords about the upcoming changes to EPC regulations, not to mention how they can make the necessary renovations,” commented MFS CEO, Paresh Raja.
“With the deadline for the new regulations just over two years away, it’s clear more support is needed.”
The MFS findings did also suggest there is support for the changes. The majority (56%) of landlords said the sustainability of their properties is important to them, irrespective of the new EPC regulations, while 48% feel the government is right to take action to improve the energy efficiency of rental properties.
However, a government consultation found that less than 3% of landlords believe that the EPC rating system was fit for purpose, and the MFS study showed that 65% want more support to help them adapt to the new regulations.
The specialist lender’s research also showed that a significant majority (64%) are unsure of how they would make their properties more efficient. Over half (52%) said they would consider raising rent to pay for any renovations their property would need.
“By working with brokers and property investors, lenders can ensure more landlords know what the new rules entail,” Raja added.
“But they can also provide flexible financial products, which will likely prove important – in the current climate, many landlords will not have the capital available to make the changes their properties need, so flexible loans could be crucial in allowing landlords to keep pace with a quickly changing regulatory landscape.”
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