A high inflationary environment has triggered a significant change in the way that landlords interact with their tenants, but less in the types of property they choose to invest in, according to a study conducted by GetGround. 

The study, which surveyed hundreds of landlords in the UK during February, revealed that a large proportion of landlords are looking to mitigate the impact of high inflation on their investments by committing to energy upgrades in their existing rental properties. 

However, it showed that fewer landlords are looking to make investments in new builds and other energy efficient properties to reduce that effect. 

New government rules require all rental properties in the UK to achieve an energy performance certificate (EPC) rate of grade C or higher by 2028.

The majority (82%) of respondents agreed that the new rules will help reduce the impact of high energy costs on families who rent. 

The study also found that 69% of landlords feel a responsibility to help their tenants mitigate the impact of the cost of living crisis on their lives, with over a third (34%) suggesting that making energy efficiency upgrades to their properties will help to provide such support. 

Half of the landlords surveyed said they intend to make upgrades to their rental property to achieve EPC ratings of grade C or above within the next 12 months, while 19% said they will make the changes within the next six months. The remaining 31% of landlords said they plan to do it in the next six to 12 months. 

Less than one in 10 (9%) said they don’t intend to make any improvements until inflation is back under 5%, which isn’t expected to occur until 2023.

Results showed that inflation isn’t changing the approach many landlords will take to expanding their property portfolios with less than a third of landlords (28%) suggesting they are more likely to invest in new builds as a result of living with higher inflation.

Similarly, 31% of landlords indicated an intention to invest only in properties with EPC ratings of grade C or higher in future. 

Commenting on the findings, GetGround CEO Moubin Faizullah says: “Newer builds and other properties where higher performing energy efficiency standards have already been achieved are, understandably, always going to be attractive to landlords.”

“Yet, observing landlords knowingly commit to investing in underperforming property when mandatory rules about EPC ratings are just around the corner indicates that many landlords continue to pick property that they know they can add value to. This isn’t just good economics for them, but goes a long way to helping to continually improve the quality of much-needed rental stock across the whole of the UK,” Faizullah adds.