Close to a third of UK landlords have called for government help so they can improve the EPC ratings of their rental properties to a C rating or above by 2030.
This is according to new research from Shawbrook, which found that 29% of landlords said that the targets set by the new Labour government would only be achievable with government support.
With the costs of any improvements the key concern, a further 16% said they would struggle to afford the costs, and a quarter (25%) said they planned to sell the properties that required upgrades.
However, some landlords have already started to make investments in their properties prior to the new regulations being introduced.
According to Shawbrook, over a fifth (21%) of landlords said they had made changes to their properties to increase their EPC rating to C ahead of the previous government scrapping of the targets last year (the targets have since been reintroduced by the Labour government).
As the UK faces another winter of rising energy costs, tenant demand for energy efficient properties is likely to rise again. However, with costs of materials and labour having increased in the last two years, making such improvements will come at a higher cost to landlords without any additional help.
Shawbrook managing director of real estate Emma Cox commented: “Our experience has shown that landlords overall are motivated to improve their properties. In 2022 we saw many take steps to do so both in response to demand from their tenants, and the-then targets from the government.
“However, when these targets came into question, at a time of significant economic headwinds, many chose to hold off on costly renovation projects. With these targets back in place, landlords now must play catch-up.”
She added: “It’s encouraging to have greater clarity from the government which will allow landlords to put in plans in the run-up to 2030, but with just over five years left to comply it’s clear that landlords will need support to get there, both from the government and the industry.”
