A third of landlords who own lower EPC rated properties plan to sell them rather than make improvements to their rating, a Rightmove survey reveals.
This is a steep rise compared with 20% who said they planned to sell last year.
Meanwhile, nearly two-thirds (61%) said they would not buy a property below a C rating – up from 47% last year.
However, the survey shows differences in attitudes to EPCs and plans for portfolios over the next 12 months, depending on how many properties landlords own.
Landlords who own five or more properties are more likely to increase their portfolios over the next 12 months (27%) compared with landlords who only own one property (10%).
Landlords with bigger portfolios are also more likely to make improvements to their properties below a C rating before 2025 and be more willing to invest in a property with an EPC rating below a C than those who only own one property.
A greater proportion of properties entering the rental market that were previously for sale have an EPC rating of C or higher, as landlords get ahead of potential legislation changes.
The survey also showed that more landlords are aware of proposed changes to EPC legislation than last year, likely contributing to some of their decision making.
In total, 80% of landlords are aware of new energy efficiency legislation, compared with 65% in 2022.
Rightmove’s property expert Tim Bannister says: “Upcoming changes to EPC legislation is a growing concern for landlords, however the data suggests that many are getting ahead and focusing their investment on properties that will meet the new minimum standard and bringing these to the rental market.
“While some may sell up, those with bigger portfolios are more likely to be planning to carry out the necessary improvements to increase the EPC rating of their lower rated homes and are more willing to invest in lower EPC rated properties, potentially to improve for the future.
“This suggests there may be a changing of the guard over the next few years, with landlords with bigger portfolios buying up lower EPC properties being sold by landlords with smaller portfolios, to improve and then rent out again.”
