Almost two-thirds (59%) of landlords believe they may have to sell up if forced to make EPC upgrades – in line with the new minimum energy efficiency standard (MEES) regulations.

This is according to new research from Mortgage Advice Bureau, which shows that a quarter (25%) of landlords surveyed wouldn’t be able to afford the changes, while a third (34%) would likely sell their property instead of upgrading it.

The survey also indicates that three in 10 (28%) are extremely concerned about the costs of upgrading their property and that these new regulations could not come at a worse time.

Anxious about incoming regulations, a fifth (21%) of landlords hope more help will become available to support them tackle the cost of energy performance upgrades.

Currently, landlords must have a minimum energy efficiency rating of an E to be able to let a property out.

However, there is an expected deadline of 2028 for landlords to retrofit their properties to a minimum of an EPC C rating. So far there is a lack of clarity on support available to landlords.

The additional cost associated with going from an EPC rating of E to C, is a major concern for landlords. Many question whether they will be able to afford to comply with the new rating.

The government has placed a focus on retrofitting and renewable energy, with their recently expired ‘Green Home Grants’ and the newly announced ‘Great British Insulation Scheme’ (formally ECO+) to help improve the performance of the least energy efficient homes.

However, there has been little in the way of policies, announcements, or clarity for landlords, leaving them confused about what upgrades will help.

Mortgage Advice Bureau deputy chief executive Ben Thompson comments: “For landlords, the proposed changes to upgrade to at least a C instead of the current E will mean they face having to foot large retrofitting bills. Our research shows just how confused and worried they are by this. Even if (as rumoured recently) the government delay the proposed deadline to 2028 for all rental properties, it isn’t long to find the money needed for the upgrades”.

He adds: “This is especially challenging when considering the recent economic climate, which has seen mortgage rates increase and the cost of everyday items go up and up. There clearly needs to be more advice, guidance, and help for landlords.”