Landlords have spent nearly £9,000 on improvements to meet proposed EPC requirements, according to new research.
The findings from Shawbrook Bank reveal that landlords have spent an average of £8,900 so far on improvements – which is almost 50% more than they had expected they would need to spend. Researchers found 21% of tenants have spoken to their landlord about making energy efficient improvements to their property. Whilst 26% of landlords have already made energy efficiency improvements to reduce energy bills for tenants, and to meet proposed EPC requirements.
Efficiency standards will become tougher in the future
Emma Cox, managing director of real estate at Shawbrook, said, “It’s likely that efficiency standards will become tougher in the future, which is just one of the reasons that landlords should take note of tenant’s requests and start making a plan.”
The findings said when it comes to the energy efficiency changes tenants would like to see made to a property, 26% of tenants stated they would like to see solar panels installed. A further 22% said they would like a new boiler and 20% said double glazing would be their preference.
A fifth of tenants (17%) said they would even consider living in a smaller property if it meant it was more energy efficient.
Tenants favouring more energy efficient properties
Under current government regulation rules landlords are not expected to spend more than £3,500 on upgrades to meet the current EPC requirements for a rating of E. However, proposed changes could see all rental properties requiring an EPC rating of C by 2028, and a potential increase to this cap to £10,000, meaning landlords could be required to spend more to meet minimum requirements.
Ms Cox added, “As trends now point towards tenants favouring more energy efficient properties, these changes should not just be seen as a tick-box requirement by landlords, but also a worthwhile investment. If tenants feel their accommodation is more cost efficient and sustainable, they will be more likely to stay, which in turn will benefit landlords.”
Propertymark hits back at claim it let agents down over EPC rules
The trade body says it has done everything it can to persuade the Government that new regulations must be realistic and workable. Propertymark has responded to criticism that it hasn’t done enough to represent landlords on the introduction of EPC regulations.
Propertymark and NRLA were accused of failing to effectively oppose new EPC rules for landlords. Any new properties for rent must have a minimum of EPC C rating by April 2025, and existing rental homes by 2028. There are fines of up to £30,000 for non-compliance.
Jeremy Clarke, a Belvoir letting agent in Christchurch, Dorset, said, "Propertymark and NRLA had meekly accepted that the changes were coming, it was too late now to stop the new regulations from hitting landlords who won’t be able to make the necessary changes to their properties. They [Propertymark and NRLA] seem to have just accepted that change is coming, they have not, as far as I know canvassed members for views, albeit they normally ignore any feedback! They let us down badly over the Tenant Fee Ban Act!”
But Timothy Douglas, head of policy and campaigns at Propertymark, says: “The UK Government’s plans for minimum energy efficiency targets are part of a legally binding agreement to meet Net Zero by 2050. We engaged fully with the Department for Business, Energy, and Industrial Strategy (BEIS) when these proposals were developed, using every opportunity to express our concern that a one size fits all approach would not work and stressed the need for timescales to be realistic and achievable. We have also worked with the NRLA to publish research highlighting the affordability of retrofitting properties in comparison to the huge regional variations in property costs to draw attention to the financial impact the new targets will have on landlord and homeowner ability to pay, and there has been no response from the Government following the consultation. Members of Propertymark have access to regular updates and opportunities to input into our policy and campaigns work.”
Chris Norris, policy director at NRLA, stated he would “push back strongly” against the claim the NRLA hasn’t been doing anything. “There is an awful lot of work going on behind the scenes. The Government hasn’t confirmed it will be 2025, and that’s partly because of the lobbying we have done in the last couple of years. We have canvassed members relentlessly on this, and at least three times in the last 18 months,” he says.