A majority (80%) of landlords have already carried out some remedial works to properties in response to the new energy efficiency requirements, and in anticipation of future Government measures in this area.
This is according to the latest BVA BDRC Landlord Panel research report for the first quarter of 2021.
The research, comprised of 683 online interviews with landlords, undertaken on behalf of Foundation Home Loans, the intermediary-only lender, between March and April this year.
Of the 80% who had taken some action, 52% said they had carried out works at the minimum cost required to comply, while nearly two in five (38%) said they had carried out works to maximise the long-term value of their property.
The research also revealed there has been a drop in the number of landlords saying they would not carry out any works and seek to sell or not re-let – down to 13% from 20% in the last quarter.
Landlord owners were also asked how many currently owned a property below an EPC level of E, with 19% saying they had one or more in this bracket, while 78% said all their properties were above E, and 3% didn’t know the EPC rating of any of their properties.
The survey asked what methods of funding landlords might use to carry out any work, with 76% (up from 62% last quarter), insisting they would use savings, 26% said they would put up rent to cover the cost (down from 30%), a static 19% said they would seek a government grant or funding. And 10% replied that they would take out a mortgage (up from 8%).
There is further positive news in terms of a marked increase in awareness of the anticipated future EPC level requirements.
The research reveals that 85% of those surveyed are aware and fully understand the details of EPC, up from 65% in the last quarter of 2022, while 12% said they were aware but didn’t understand it (down from 25%), and only 3% were not aware at all (down from 9%).
Foundation Home Loans managing direct George Gee says the survey results show a clear intention by the vast majority to ready their properties for future measures and Government legislation, and a positive intent, particularly when it comes to staying invested and not selling up if the property is not currently at the required level.
