Starting from 2025, newly rented properties in the UK will need an EPC rating of ‘C’ or above. In anticipation of the impending deadline, new research from BVA BDRC reveals how many landlords are taking action in accordance with the new energy efficiency requirements.
Greater enthusiasm towards home enhancements
According to the latest Q1 2023 BVA BDRC Landlord Panel research report:
80% of landlords have already carried out some remedial works on their properties to meet new EPC regulations.
Of those, 52% said they had carried out works at the minimum cost required to comply.
38% said they had carried out works to increase the long-term value of their property.*
The research also found a drop in the number of landlords saying that they would not carry out any works and seek to sell before the deadline – dropping from 20% to 13% in the last quarter.*
Better awareness among landlords
In the study, landlords owners were also asked how many currently owned a property with an EPC rating lower than ‘E’.19% said they had one or more in this bracket, while an astounding 78% said all their properties were above an ‘E’ grade, and a mere 3% didn’t know the EPC rating of any of their properties.*
These results suggest that landlords are becoming increasingly engaged with the EPC ratings of their property portfolios, and ways that they might improve them if necessary.
Landlords are switched on about their funding options
The study also asked landlords about their potential methods of funding to carry out any work. From the multiple-choice survey:
76% – a notable jump from 62% in the last quarter – said they would use savings,
26% said putting up rent would cover the cost (down from 30%),19% said they would seek a Government grant or funding to improve their property’s energy efficiency.*
Furthermore, 10% would take out a mortgage and 10% would take out a loan.*
Should landlords be worried about upcoming changes?
With legislative changes on the horizon, the question arises; should landlords sell up and abandon the market?
Managing Director for Martin & Co, Eric Walker says:
“Selling your investment now, at a time when rents are at their highest and you’ve the best choice of tenants, is unnecessary.”
“While we absolutely support improvements to energy efficiency for rental properties, there is no reason to panic. Additionally, new grounds 1 & 1A under section 8 allow landlords to seek possession should they wish to sell or should they or a family member wish to reoccupy the premises. This could be construed as a ‘no fault’ eviction.”