The ‘Confronting the EPC Challenge’ report by Shawbrook Bank surveyed 1,000 landlords, which also revealed that a further quarter (27%) of landlords admitting they don’t know the energy efficiency rating of their property.

Under new proposed regulations, landlords may be required to make changes to their properties to improve the energy efficiency by 2025 for all new tenancies. This means bringing their property’s EPC rating up to a C or above. For existing tenancies, landlords have until 2028.

For landlords with older properties, making these improvements could be a costly exercise, says Shawbrook with the report revealing that two in ten landlords don’t have the necessary funds required to begin refurbishments of their properties.

This is particularly the case with older landlords – those aged over 55. A quarter of this group said they don’t currently have the funds available to make changes to their properties to bring them in line with the proposed requirements.

The English Housing Survey found that there has not been an increase in energy efficiency among housing stock in the PRS over the last year – despite an increase in housing stock in England overall.

Close to half of landlords said they would benefit from guidance on what the EPC legislation means specifically for landlords, while 37% want to see incentives to make changes such as favourable borrowing rates.

A third of landlords surveyed called for guidance on timings on how to phase the implementation of changes, and 29% wanted to see signposting to suppliers who could help them make improvements to their properties. The same proportion also wanted to receive guidance on how to manage tenants during the improvement process.

Landlords were also interested in speaking with other landlords about the issue, with 21% looking for a shared space to discuss problems and share solutions. In response to this, Shawbrook has established a working group of industry professionals, landlords and policy makers together to find possible shared solutions to the challenge.

Shawbrook Bank sales director Emma Cox says: “Improving the energy efficiency of properties is a vital step in reducing our impact on the environment, however, this will not necessarily be a straightforward process for landlords. The UK has a significant proportion of older properties that are particularly challenging to improve, and many landlords remain in the dark as to their properties’ current ratings.

“Landlords will require further support from both the industry and the government in order to make the changes in good time. Indeed, with the cost of labour and supplies rising, it could be a costly exercise for all landlords, but there are solutions available.

“It is in everyone’s interest that properties are made more energy efficient, however this cannot be done half-heartedly, and we must ensure sufficient resources are provided so that landlords can make the appropriate changes to benefit their properties and their tenants.

We hope that our forthcoming working group provides a space for landlords and the wider industry to share ideas and solutions to confront this challenge, and we look forward to sharing the findings in the coming weeks and months.”