The originally proposed changes set out that all tenanted properties in England would need to have an Energy Performance Certificate (EPC) rating of at least band C from 2028 (with new tenancies requiring this from 2025).

However, this has now been scrapped, leaving us with the current rules which set out that all let properties must have an EPC rating of at least band E.

While it will now not be a requirement for landlords to have an EPC rating of at least band C in their rental properties, the PM has said that he will still “encourage landlords to do so where they can.”

Of course, there is a General Election on the horizon and a new Government could take a different view but during times when it’s been nigh on impossible to make too many predictions around political, economic and market-related events, landlords are having to make their proactive and reactive judgements.

So, what does this U-turn mean for landlords?

Many landlords may interpret this new EPC review as positive news. After all, they are no longer facing the impending, and mandatory, burden of having to invest a significant amount of money into upgrading individual properties within their portfolios. However, those landlords that have already spent considerable sums to fall in line with these former plans may feel that they have been unfairly treated and forced into such action without any recourse.

This was evident in recent research from Shawbrook which revealed the scale of preparation already implemented by UK landlords ahead of proposed changes to EPC legislation since been abandoned by the government.

Shawbrook found that 80% of UK landlords were already prepared for the 2025 EPC regulation deadline. Of these landlords, 30% said their properties already have an EPC rating of A-C, while 50% said they had plans in place to improve their EPC rating before 2025.

However, 17% said they were not prepared and had no plans to improve the EPC rating of their property with 3% saying they had not heard of the regulation. Some 46% of landlords were suggested to have spent between £500 and £20,000 on improving or investing in their property in the last year, with the mean average amount spent by landlords amounting to £25,148. This average amount rose to £37,164 for London-based landlords.

A fifth (20%) said that cost of labour for property improvements was a key concern for their rental properties over the next six months, while 16% said EPC regulations were a concern.

The proposed regulations have also prompted many landlords to be more energy conscious when investing in new property, with 28% prioritising buying newer, more energy-efficient properties in the next six months. When asked about previous rumours of the initial EPC regulation deadline moving to 2028, 31% said it would give them more breathing space to complete improvements across their portfolio, while 29% said they would progress with their improvement plans regardless.

These findings make for some fascinating insight and it was encouraging to see how prepared the majority of the landlord community are in making positive energy-related change. Although it will also be interesting to see how many follow through on these plans, and to what degree, in the wake of this U-turn.

One important factor which could tip the balance is rising tenant demand for more energy-efficient homes and let’s hope this environment-focused drive, from both landlords and homeowners, will continue as improving the level of carbon emissions from the UK housing stock remains central in achieving the proposed net zero plans going forward.

Jonathan Bourke is director of retrofit at Countrywide Surveying Services