As many as 62% of landlords do not know they need an energy performance certificate (EPC) and many don’t realise their property must have a C rating by 2030.
There are now concerns over the fact so many landlords are not aware of their legal obligation to have an EPC and this has raised fears it might hamper the government’s efforts to improve energy efficiency.
A recent survey of 1,000 landlords by buy-to-let mortgage lender, The Mortgage Works, revealed only one in three were aware that by 2030 their EPC must have a rating of C or above. Three quarters did not know the date these rules were due to be enforced.
EPCs are documents which show how energy efficient your home is. Homes are assessed and then given a rating from A to G – A being the most energy efficient.
Residential property owners need an EPC to sell their property, but landlords must have one by law before they market their property for rent.
The requirement by 2030 to have an A to C energy efficiency rating has, however, spooked some landlords and the survey discovered 28% of landlords planned to sell their homes as a solution to the incoming changes.
Indeed, nearly two thirds were unsure how much money it would cost to bring their properties up to EPC-C rating standard. Meanwhile, more than one in five (21%) believed they would need to spend up to £6,632 on average, depending on the property’s current value.
Many are also concerned the works will have a financial impact on tenants, with over a third saying they would raise rent to cover the cost. Some landlords said the disruption the works would cause might leave them having to pay compensation to tenants.
17% said they would need to evict tenants to complete the work.
Dan Clinton, head of buy to let at The Mortgage Works, said: “Changes to Minimum Energy Efficiency Standards have been under discussion for some time but our research shows limited landlord awareness with some looking to exit the market.
“Policymakers should recognise the vital role landlords play in supporting economic growth through labour mobility and for providing homes to low-income households.
“Improving the energy efficiency of private rented homes is important but the significant logistical and financial challenges of upgrading 2.5 million properties must be acknowledged. Striking the right balance between environmental progress and housing stability is crucial.
“To safeguard continued investment and protect tenants from higher rents or reduced supply, landlords need clear guidance, adequate support, and sufficient time to make their properties greener.”
