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Landlords Face Tough Choices as EPC Deadline Looms

21st November 2024

A new survey reveals that most landlords are aware of upcoming Energy Performance Certificate (EPC) regulations, but many are unprepared. Over two-thirds of landlords own properties that don’t meet the new ‘C’ target, raising questions about how they will adapt. Will they invest in upgrades, pass the costs on to tenants, or simply sell up? Read on to discover the challenges and opportunities facing landlords in the face of these new rules…

Landlords

Estimated reading time: 3 minutes

Last updated: Thursday 21st November 13:04

A recent survey by Foundation Home Loans has revealed that over two-thirds of private landlords own properties that fall short of the new Energy Performance Certificate (EPC) ‘C’ target. While awareness of the new standards is high, a significant number of landlords are still unclear on the details.

Key Findings:

  • EPC Knowledge Gap: Although 92% of landlords are aware of the new EPC requirements, only 67% fully understand them. Portfolio landlords, those with four or more buy-to-let mortgages, show a slightly lower level of understanding.
  • Improvement Plans: 42% of landlords plan to make the necessary upgrades to meet the EPC ‘C’ standard. However, a significant proportion (34%) intend to sell their non-compliant properties without making any improvements.
  • Funding the Upgrades: Landlords plan to fund the upgrades through a variety of means, including savings, rent increases, grants, equity release, and loans.

Challenges and Opportunities

The survey highlights the challenges landlords face in meeting the new EPC requirements, including the costs involved and the need for clear guidance. It also underscores the role lenders and intermediaries can play in supporting landlords through green mortgage products and tailored advice.

The Bottom Line

The clock is ticking for landlords to ensure their properties meet the new EPC standards. Those who fail to comply risk facing penalties or being unable to let their properties. By taking proactive steps to understand the requirements and explore financing options, landlords can future-proof their investments and contribute to a more sustainable rental sector.

Check out this YouTube video on how to get an EPC rating of C:

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  1. What is a guaranteed rent agency? A guaranteed rent agency is a company that takes over the management of a rental property and provides the landlord with a guaranteed rental income, often for several years.

  2. How much do guaranteed rent agencies charge? The fees charged by guaranteed rent agencies vary but typically range from 10% to 20% of the monthly rent.

  3. Are guaranteed rent agencies worth it? Guaranteed rent agencies can be a valuable option for landlords seeking peace of mind, reduced management hassles, and financial security. However, it is essential to carefully consider the fees and terms of the agreement before partnering with an agency.

  4. What are the risks of using a guaranteed rent agency? The primary risk is that the agency may not be able to find suitable tenants or may not adequately maintain the property. It is crucial to choose a reputable agency with a proven track record.

  5. Can I switch to a guaranteed rent agency if I already have tenants? Yes, many guaranteed rent agencies are willing to take over existing tenancies. However, it is essential to check the terms of the agreement and any potential impact on the existing tenants.

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