One in five landlords do not know about the upcoming energy performance certificate upgrades the government plans to impose, data from Market Financial Solutions shows.
The specialist lender says 42% of landlords are “still unaware” of the rule changes around the energy efficiency of rented homes that take effect in two years.
The government proposes that all newly-rented properties should have a minimum energy performance certificate standard of C in England and Wales by April 2025. The minimum standard is currently E. The measure will apply to existing tenancies from 2028.
The lender points out that while 58% of landlords are aware of the upcoming changes, this rises sharply among more experienced owners.
It finds that 57% of landlords with a single buy-to-let home know about the new regulations, but this jumps to 77% among those with four or more BTL properties.
However, just 38% of landlords “fully understand” what the changes mean, with 64% unsure of how to make their properties more efficient.
The study finds that 52% would consider raising their rents to pay for any renovations their property may need.
Over the past year, 15% have spoken to a broker or lender about securing finance to improve their properties’ energy use, while 65% of these owners want more support to help them adapt to the new regulations.
A third of landlords are considering selling their BTL properties before 2025, due to concerns over how they would finance the necessary renovations.
Market Financial Solutions chief executive Paresh Raja says: “Despite there being support for making the property market greener, there remains a worrying lack of awareness among landlords about the upcoming changes to energy performance certificate regulations, not to mention how they can make the necessary renovations.
“With the deadline for the new regulations just over two years away, it’s clear more support is needed. Lenders can help.
“By working with brokers and property investors, lenders can ensure more landlords know what the new rules entail.
“But they can also provide flexible financial products, which will likely prove important – in the current climate, many landlords will not have the capital available to make the changes their properties need, so flexible loans could be crucial in allowing landlords to keep pace with a quickly changing regulatory landscape.”
The lender’s research was conducted by data firm Opinium, which carried out an online survey of 459 landlords between 20 and 25 January.
