Landlords plan to sell rather than make EPC improvements

Landlords plan to sell rather than make EPC improvements

0:01 AM, 28th July 2023, About A year ago 3

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Landlords would rather sell their properties than make energy efficiency improvements, according to a new Rightmove survey.

A consultation on new EPC and minimum energy efficiency standards (MEES) requirements ended two years ago.

The government has given no response to it, leading to widespread uncertainty in the PRS about what is expected from landlords.

61% of landlords say they would not now buy a rental property below a C rating

The Rightmove greener homes report, reveals 40% of landlords with one property say they are more likely to sell up than improve the energy efficiency of their property.

The survey also reveals 33% of all landlords who own lower EPC-rated properties plan to sell them rather than make improvements to their EPC rating.

An increase on 20% who planned to sell rather than improve their lower-rated homes last year.

More than half (61%) of landlords say they would not now buy a rental property below an EPC rating of C, up from 47% when asked last year.

The data shows that if green improvements carry on at the same rate, it would take 43 years for 100% of the houses that are currently for sale across Great Britain to reach an EPC rating of A-C, and 31 years for houses that are currently available to rent.

Affordability will remain a challenge

Tim Bannister, Rightmove’s director of property science, says: “It’s clear that the current incentives aren’t yet big enough to make people sit up and take notice, and even the incentives that do exist aren’t easy to find out about.

“The challenge right now is that there are not enough suppliers and equipment for the greenest option to be the most affordable option for homeowners and landlords.

“We need to wait and see what the government proposes or what green finance options become available. Affordability will remain a challenge unless the incentives are big enough.”

Tenants say a property’s energy efficiency is a major factor

The jump in energy bills appears to have had an impact on the type of home that tenants are looking for.  Nearly one in five (19%) tenants say a property’s energy efficiency is a major factor when choosing where to live.

According to the survey, 13% of homeowners say it is a major factor, but this rises to 19% for first-time buyers.


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TJP

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13:55 PM, 28th July 2023, About A year ago

My biggest problem with the legislation is that it ignores the far bigger question, which is; why are owner-occupiers not targeted with the same legislation? If the aim is to reduce greenhouse emissions, there are far more of those than rental properties. Makes no sense to arbitrarily single-out the minority, while ignoring the much more emission-producing majority. But maybe, as a but a poor, brain-dean but extremely wealthy landlord, I do not understand such matters !!

Reluctant Landlord

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14:30 PM, 28th July 2023, About A year ago

when you boast the words 'wealthy LL' you play right into the hands of those that create such policy.

Policy (especially eco ones) are not about sense, its about jumping on the bandwagon to be seen to be doing something that everyone apparently agrees needs to be done, with while getting others to pay for it.

GlanACC

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18:57 PM, 28th July 2023, About A year ago

Reply to the comment left by TJP at 28/07/2023 - 13:55
Actually, for the government it makes perfect sense to target landlords. They can legislate easily against landlords preventing them from letting unless the EPC is a C (or exemption). Trying to go for the bigger homeowning market would cost them votes.

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