New research from the Mortgage Advice Bureau shows that two-fifths (41%) of landlords believe that, outside of legal obligations, new EPC requirements are important for the environment and will help the UK to tackle the climate change crisis.
A further third (34%) believe that upgrading their properties’ EPC ratings will have a net benefit to the UK’s carbon emissions targets.
The survey of 500 landlords across the country comes as residential landlords await confirmation of proposed reforms to the Minimum Energy Efficiency Standard (MEES) regulation.
Under the proposed changes, rental properties will need an EPC rating of at least C by 2028, with an earlier deadline of 2025 for new tenancies.
For landlords, it is a race against time. Whilst 30% are confident they’ll reach the deadline with ease, almost half (46%) admitted it will be by the skin of their teeth as they retrofit properties.
Alongside landlords’ own desire to reduce their properties’ impact on the environment, tenant demand is also a key factor. Over three in ten (31%) of landlords believe the upgrades will make their properties more attractive by lowering tenants’ bills.
However, the push towards more energy efficient properties doesn’t come with some concerns. The costs of making all the necessary upgrades and finding a trusted tradesperson are both key fears for landlords, alongside the disruption it may cause tenants (23%).
Mortgage Advice Bureau deputy chief executive Ben Thompson comments: “Landlords seem to be working with a lot of information in terms of regulations and deadlines that aren’t quite set in stone, yet the 2025 countdown remains for EPC rating improvements. The good news is, many landlords are making progress, despite some challenges”.
He adds: “There are some very clear and urgent motivations behind making this change. Tackling the ongoing climate crisis is at the forefront of many of our minds, and for landlords and the future of their portfolios, being able to help tenants navigate the economic climate of high energy bills is key”.
