"Despite there being support for making the property market greener, there remains a worrying lack of awareness among landlords about the upcoming changes to EPC regulations"
Specialist lender, Market Financial Solutions, commissioned an independent survey among 459 UK landlords who own one or more rental properties. It found that only 58% are aware that the rules around EPC ratings are changing – while only 57% of landlords with a single buy-to-let property know about the new regulations, this does rise to 77% among those with four or more BTL properties.
Just 38% of landlords fully understand what the change in rules will entail.
But there is support for the changes. 56% of landlords said the sustainability of their properties is important to them irrespective of the new EPC regulations, and 48% feel the government is right to take action to improve the energy efficiency of rental properties.
However, a government consultation found that less than 3% of landlords believe that the EPC rating system was fit for purpose, and MFS’s study showed that 65% want more support to help them adapt to the new regulations.
MFS’s research showed that a significant majority (64%) are unsure of how they would make their properties more efficient with 52% saying that they would consider raising the rent to pay for any renovations their property would need.
In the past year, 15% have spoken to a broker or lender about securing finance to improve their properties' energy efficiency. 33% are considering selling their BTL properties before 2025 due to concerns over how they would finance the necessary renovations.
Paresh Raja, CEO of MFS, said: “Despite there being support for making the property market greener, there remains a worrying lack of awareness among landlords about the upcoming changes to EPC regulations, not to mention how they can make the necessary renovations. With the deadline for the new regulations just over two years away, it’s clear more support is needed.
“Lenders can help. By working with brokers and property investors, lenders can ensure more landlords know what the new rules entail. But they can also provide flexible financial products, which will likely prove important – in the current climate, many landlords will not have the capital available to make the changes their properties need, so flexible loans could be crucial in allowing landlords to keep pace with a quickly changing regulatory landscape.”
