Landlords delay rental property EPC upgrades

Landlords delay rental property EPC upgrades

0:01 AM, 24th January 2025, About 2 days ago 21

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More than half of landlords with properties with an energy performance certificate (EPC) rating below C are delaying essential upgrades to meet the government’s 2030 deadline, a survey reveals.

According to Landbay, 58% of landlords with below-C rated properties are waiting until closer to the deadline to carry out the necessary work.

The survey reveals that just over a third of landlords (35%), said their properties fell below C, with half being above C.

Worryingly, just over 5% of landlords don’t know what their EPC rating is.

‘Landlords have properties at C rating’

The lender’s sales and distribution director, Rob Stanton, said: “It’s encouraging that half of our landlords have properties at C rating or above.

“But those landlords who don’t, and who are putting off upgrading their properties, need to be careful.”

He added: “Kicking the can down the road may mean that, with a national skilled worker shortage, landlords risk not getting the work done in time, they may face significant fines as a consequence.”

Landlords won’t carry out any improvements

The survey found that 6% of PRS landlords say they intend to continue renting without making any EPC improvements.

Just 18% of landlords with below-C rated properties plan to make improvements immediately.

The government says all rental properties must achieve at least an EPC C rating by 2030, or landlords will face substantial fines.

‘EPC ratings are somewhat unrealistic’

One landlord told Landbay: “I think the EPC ratings are somewhat unrealistic for most given that the council themselves also have properties in need of upgrades.”

The survey also showed that those landlords who have between 11 to 20 properties have the most properties rated between D to G at 36%.

These were followed by landlords who have between four to 10 properties, at 27%.


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JeggNegg

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9:47 AM, 24th January 2025, About 2 days ago

As a small B2L landlord, with older properties, and EPC’s below C, I am prepared to invest in these properties to improve the EPC.
BUT my understanding is the EPC database is out of date. Energy technology is improving constantly, and there is a degree of randomness between assessors.
If true surely these fundamentals
need to be addressed before expecting a landlord to invest large capital investments to hit a moving target?

Neil P

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9:59 AM, 24th January 2025, About 2 days ago

If you’re below a C why would you do upgrades now unless it makes you a C? I’m certainly not. You may be spending money that would otherwise come out of a possible future cost cap (£10k has been suggested). Not the right thing for the tenant or the planet but that’s what you get with the current uncertainty.

If you can get to a C now then great, get it done and get a new EPC that will last 10 years. I can’t see there being a cliff edge of everyone having to renew EPCs straight away if the EPC rules change. There’s not enough trades to cope…far better let existing EPCs naturally run out and spread the work over 10 years. Or is that too sensible for this government (🤡🤡🤡)?

And I’m still none the wiser as to why social housing will be exempt from C ratings. Blatant PRS discrimination?

Jo Westlake

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10:02 AM, 24th January 2025, About 2 days ago

I had an EPC assessment a couple of weeks ago and the assessor said the way points are awarded was changing later this year. An example he gave was underfloor insulation. Currently anything less than 50mm doesn't score any points. He said thinner insulation will soon gain some points.

A few weeks ago there was an article directing us to the consultation currently being carried out by the government for more potential changes due to take effect in 2026.

With at least two changes to calculation methods due way before 2030 we would be mad to do anything now.

When it says 5% of landlords don't know what their EPC is does that mean they are completely oblivious or that they know the score is totally wrong as the previous assessor deliberately downgraded it to get grant funding for insulation? One of mine used to be D and was then downgraded to E for exactly that reason. Since it was an D it has had loft insulation, roof insulation, cavity wall insulation and a new boiler. If it was assessed today it wouldn't be E but I have no idea if it would be D or hopefully C. So am I one of the 5% who doesn't know what my EPC is?

Sam B

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11:29 AM, 24th January 2025, About 2 days ago

Reply to the comment left by Jo Westlake at 24/01/2025 - 10:02
Hi Jo, Did your assessor say whether current C properties would be downgraded? I have a house that was C 10 years ago and now has been downgraded to just below with 2 points below C. My assesor claimed cavity wall insulation effectiveness was downgraded a few years ago is one reason for the downgrade for eg

Jack Craven

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11:51 AM, 24th January 2025, About 2 days ago

I am having a property assessed next week I think it will be an E again, so is it good for 10 years ?

Neil P

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12:42 PM, 24th January 2025, About 2 days ago

Reply to the comment left by Jack Craven at 24/01/2025 - 11:51
That depends what the government come up with! I’m pretty sure the EPC will be valid 10 years, but whether you’ll be able to relet it with an E is another matter…

It’s the uncertainty that kills you!

Beaver

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13:23 PM, 24th January 2025, About 2 days ago

Reply to the comment left by JeggNegg at 24/01/2025 - 09:47
You are correct. The problem with investing at the moment is that this is likely to be capital investment. If the government wants this done you should at least be able to make the improvements by offsetting the investment against revenue expenditure.

As for the fines, you don't necessarily need to pay a fine. You might just need to get the tenants out in order to make the improvements. For many landlords the necessary improvements will be so disruptive that it won't be possible to make them with tenants in residence anyway.

Jo Westlake

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13:28 PM, 24th January 2025, About 2 days ago

Reply to the comment left by Sam B at 24/01/2025 - 11:29
It depends on the property and who assessed it last time.
I've used this assessor many times and he can go either up or down from the previous assessor. I think a lot depends on how much experience they have, how much information you provide and what their actual agenda is.

This time round the property went from C73 to C76 with no changes during the 10 years between assessments apart from a new room thermostat.
Previously the same assessor has regraded something from F25 to G14 within a year of the original assessment (by the estate agents assessor).

Beaver

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13:41 PM, 24th January 2025, About 2 days ago

Reply to the comment left by Jo Westlake at 24/01/2025 - 13:28
I have also found both the EPC system and the assessors to be inconsistent and one of the problems is that even if you make capital investment now it may not necessarily get you to band C in future.

As I understand the situation, when the renters' rights bill goes through we will not be able to use section 21 any more but we will still be able to use section 8. One of the grounds for section 8 is ground 6, the property needs redevelopment. If what is required to address the issues in the property is so costly/extensive that it cannot be done with the tenant in situ then my intention (assuming that I intended to keep renting the property as opposed to selling it or moving into it) we be to issue a section 8 notice under ground 6.

Keith Wellburn

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15:02 PM, 24th January 2025, About 2 days ago

To do something at this point would be jumping the gun somewhat. The current regime is primarily based on the COST of energy. My bill shows electricity to be about four times the cost of gas. That is why the current regime will likely downgrade a property that could have a mains gas boiler system rather than a heat pump.

There is enough misinformation about with many MPs believing that heat pumps save money on bills period. A little disappointing an article on a landlord forum seems likely to lead people to believe they are being tardy rather than very wise if they are not spending serious money without fully knowing the actual implications, the validity of current EPCs (I’m fairly sure France has just decided to effectively cancel existing EPCs before the normal expiry). Then there is the matter of the financial help that is mooted not being finalised.

Very much tread with caution to do anything now IMO

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