The majority of landlords are considering buying low EPC-rated properties to take advantage of upcoming government proposals, according to research from Landbay.

Over half (53%) of landlords with larger portfolios of 10 or more properties say they would consider buying low rated assets with plans to bring them up to the required rating.

The government is proposing new tenancies must be C-rated by 2025, with existing tenancies aligning with this by 2028.

Plans to buy low rated assets in advance are not restricted to large landlords.

Of portfolio landlords with four to 10 properties, 32% identify buying and upgrading as a strategy in light of these proposals.

For non-portfolio landlords, 20% have this intention.

Across the sample, 80% of landlords already have low-rated properties they intend to bring up to at least a C rating.

Paul Brett, Landbay managing director of intermediaries, says: “Buying properties and making them more energy efficient will raise the value of the property and the rental income landlords can charge, as well as reducing tenants’ energy bills.

“A few extra thousand pounds spent at the buying stage will be an investment for the longer term.”

Many of these landlords are also aware of green mortgages, with 84% saying they like the incentive of discounted interest rates.

Brett adds: “As awareness of EPC requirements and green mortgages improves, I expect to see many more landlords taking advantage of the lower rates offered by the green mortgage.”