Landlord’s EPC deadline: Does anyone else feel conned?

Have you invested thousands of pounds to upgrade your rental property to meet the proposed EPC rating of C? Or have you decided it’s too expensive to do the work and sold up? Then this week’s news from Michael Gove probably made you very angry. I know I was. In the words of the great Johnny Rotten: “Ever get the feeling you’ve been cheated?”

It’s not just the number of idiots who keep pushing the non-existent deadline of 2025 to meet a minimum EPC rating of C for new tenancies, and 2028 for all tenancies – THERE IS NO DEADLINE! – it’s the fact that many of us girded our loins and started preparing for what we expected was to come.

Now Property118 reports that Gove is saying we should slow down the move to a deadline because too much is being asked of landlords and the predicted cost of improvements. What?

In recent years, the UK government has pushed forward with its environmental agenda, with the Energy Performance Certificate (EPC) rating being one of the cornerstones of its efforts to reduce carbon emissions.

Despite the fact this proposal was only aimed at the private rented sector and not social housing and residential homes, most landlords knew deep down that we would be targeted with fines if we didn’t comply. So, many of us did.

Upgrade their properties’ EPC rating

There will be lots of landlords who will have spent considerable sums of money to upgrade their properties’ EPC rating or, in some cases, sold their properties altogether to avoid the never-agreed-but-everyone-thinks-there-is-one deadline. Now, with the government contemplating a rethink on when this should happen, landlords who are out of pocket will be left questioning the fairness and reliability of the whole process.

For me though, the biggest tragedy is for those landlords who had old homes and sold up, probably with a decent tenant family, because they knew it was an impossible task to improve the EPC rating. A family forced to move on, for what? A landlord who gave up an asset on a poorly thought-out wheeze.

I don’t doubt addressing climate change and reducing energy consumption is essential. As responsible citizens, landlords, like everyone else, should contribute to these noble goals. Nevertheless, it is crucial to address the issues arising from the government’s flip-flopping stance on the EPC deadline.

The 2028 deadline was an ambition

When it was first mooted, landlords came under immense pressure to upgrade their properties. This was not helped by various PRS organisations and even lenders who hadn’t quite twigged that the 2025 then 2028 deadline was an ambition and not a law.

This has created lots of confusion in the sector and led to many landlords investing significant amounts of time and money to improve the energy efficiency of their properties, only to now be told that the ‘deadline’ might be reconsidered. This inconsistency showcases a lack of commitment on the government’s part and raises doubts about the seriousness of their climate change policies.

Also, the cost burden of improving the EPC rating falls solely on the shoulders of landlords. These expenses can be substantial, especially for small-scale landlords who own one or a few properties. Selling up then made financial sense even though that leaves fewer homes to rent.

EPC ratings have been criticised for their accuracy

My other big issue is that the EPC ratings themselves have been criticised for their accuracy and effectiveness. Just read some of the forum answers on Property118 which highlight many landlords’ experiences that the EPC rating system is flawed and inconsistent – which leaves most of us with a lack of faith in the validity of the entire process. And the criteria for future EPC ratings might be changing! You couldn’t make it up.

If the government is serious about driving real change, they should work on developing a more robust, reliable and transparent system to accurately assess a property’s energy performance. And that’s for ALL properties and not just those owned by landlords.

We can’t be the only ones responsible for fighting climate change while other property owners escape the same level of scrutiny.

Forking out thousands of pounds on EPC improvements

So, if you feel disappointed at forking out thousands of pounds on EPC improvements, or you have sold up or feel saddened that decent tenants had been forced to find somewhere else to live, then join the club.

I keep on saying the same thing: We need to organise properly as landlords to make a stand that the government and tenant organisations will be afraid of. Without PRS landlords delivering decent homes for rent, where will private renters live?

The EPC debacle is just one issue we should unite and fight against, but we probably won’t which means life as a landlord will continue being the depressing and soul-destroying occupation it has become.

Conned? Not quite the word I would use but then I’m not allowed to use a word that rhymes with ‘cooked’.

Until next time,

The Landlord Crusader

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