Research indicates landlords' preparation for scrapped regulation
Research has revealed the level of preparation already completed by UK landlords in readiness for the Government’s proposed EPC legislation.
The regulation, which has now been scrapped, required landlords’ rental properties to adhere to a minimum EPC rating of C by 2025 for new tenancies, and for all rental properties by 2028.
The key findings by specialist financial services business, Shawbrook show that 80% of UK landlords said they were already prepared for the 2025 EPC regulation deadline.
Of these landlords almost a third (30%) said their properties already had an EPC rating of A-C, while half (50%) said they had plans in place to improve their EPC rating before 2025. Meanwhile, 17% said they were not prepared and had no plans to improve the EPC rating of their property.
Emma Cox, managing director of real estate at Shawbrook Bank said: “Scrapping the impending EPC regulations might free up capital in the short term for landlords who haven’t yet invested in improving the energy rating of their properties. But while policies shift, climate change is going nowhere, and energy efficient buildings will remain central to net zero plans.
“Rules might not be changing as soon as 2025, but professional landlords with modern, energy efficient stock will be in the best position to attract tenants, as well as reduce potential voids, and importantly, be prepared for future legislative change.”
Nearly half (46%) of landlords had spent between £500-20,000 on improving or investing in their property in the last year, with the mean average amount landlords have spent being £25,148.
This average amount rose to £37,164 for London-based landlords.
A fifth (20%) said that cost of labour for property improvements was a key concern for their rental properties over the next six months, while 16% said EPC regulations were a concern. The proposed regulations have also prompted many landlords to be more energy conscious when investing in new property, with over a quarter (28%) prioritising buying newer, more energy efficient properties in the next six months.
When asked about previous rumours of the initial EPC regulation deadline moving to 2028, 31% said it would give them more breathing space to complete improvements across their portfolio, while 29% said they will progress with their improvement plans regardless.