Three in 10 BTL landlords unaware of EPC rating requirements

Three out of 10 buy-to-let landlords (30%) are still unaware of government proposals that all rental properties must have an Energy Performance Certificate (EPC) rating of A, B or C, a new study has indicated.

New research undertaken by Landbay suggested that awareness of EPC ratings is much higher among portfolio landlords than non-portfolio landlords.

The research also revealed that 68% of the landlords surveyed had properties with an EPC rating of D or lower. However, the majority of those (80%) intend to make changes to bring their properties up to at least a C rating.

Currently, the proposals are that new tenancies must be C rated by 2025, and by 2028 for existing tenancies. Landbay suggested that some landlords are viewing these changes as an opportunity, especially those with larger portfolios of 10 properties or more.

The survey indicated that 53% of these landlords said they would consider buying homes that were D rated or lower and bring them up to at least a C rating. This compares to 32% of portfolio landlords with four to 10 properties who would do the same, but only 20% of non-portfolio landlords would choose to buy and upgrade.

“Our survey shows that most landlords are aware of the potential new EPC rulings by 2025 and many will have to upgrade their properties to a C rating,” Landbay managing director of intermediaries, Paul Brett. “Some of them, especially the larger portfolio landlords with 10 or more properties, are looking at how they can turn this to their advantage.

“Buying properties and making them more energy efficient will raise the value of the property and the rental income landlords can charge, as well as reducing tenant’s energy bills. A few extra thousand pounds spent at the buying stage will be an investment for the longer-term.

“As awareness of EPC requirements and green mortgages improves, I expect to see many more landlords taking advantage of the lower rates offered by the green mortgage.”

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