Landlords are acting to improve property EPC ratings

Landlords who own properties with an Energy Performance Certificate (EPC) rating of D or lower are actively planning to improve their ratings to at least a C, research reveals.

The findings from Landbay’s quarterly landlord survey indicate that nearly two-thirds of landlords (65%) currently possess properties rated D, E, F or G.

However, 34% of them are determined to make the necessary improvements to achieve a C rating as soon as possible.

Also, 39% of landlords expressed similar intentions but intend to wait until closer to 2028, in line with the government’s proposed deadline.

That’s a big shift in landlord attitudes to EPC ratings with the same survey last summer revealing just 27% were planning to take immediate action.

‘Government’s proposal remains just that – a proposal’

Landbay’s managing director of intermediaries, Paul Brett, said: “The government’s proposal remains just that – a proposal, and the can has been kicked down the road a couple of times already with the change to 2028 being the latest.

“If Michael Gove’s comments are anything to go by, we could yet see further movement to the timeline.”

He added: “In spite of this, it’s very encouraging to see the majority of landlords with lower rated properties planning to make improvements, especially the strong proportion pledging to as soon as they can.

“If Gove does get his way, it will be interesting to see how these results change – if at all.”

Deadline for landlords to achieve a minimum EPC rating

The survey comes after Housing Secretary Michael Gove last week hinted at the possibility of moving the proposed deadline for landlords to achieve a minimum EPC rating of C.

He expressed concerns in a newspaper interview that the government’s current expectations were overly ambitious, stating that they were asking ‘too much too quickly’ from landlords.

As a result, he suggested that it might be necessary to ‘relax the pace’ of reforms anticipated from landlords.

The initial proposals were for new tenancies to meet the EPC rating of C deadline by 2025, and all tenancies by 2028.

There’s still no date for meeting a C rating has been given.

Awareness among landlords of the government’s EPC proposals

However, awareness among landlords of the government’s EPC proposals has remained steady, with 78% of landlords being aware of the plans in the latest survey, compared to 79% in August last year.

The issue continues to be contentious, as some landlords face significant expenses, potentially spending thousands of pounds, to bring their properties up to the required standard, especially amidst rising costs in the current economic climate.

A government analysis suggests that for most privately rented homes, energy efficiency improvements are likely to cost between £5,000 and £9,999.

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