Landlords Face Tough Choices as EPC Deadline Looms

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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Rizwan Moledina

Riz is the founder of homes2let and has been in real estate for over twenty years. He has a background in economics and is a real estate developer and buy to let investor.

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