The research from Shawbrook comes following the Autumn Statement where the Chancellor reaffirmed the government's commitment to net zero with a proposal to reduce energy consumption from buildings and industry by 15% by 2030.
Chancellor Jeremy Hunt has revealed that government will be doubling funding to improve the energy efficiency of buildings and industry to achieve the target, adding another £6bn from 2025.
While landlords are currently able to let homes which have an EPC rating of D and above, the government standards are widely expected to become tougher. The government has previously set out an aspiration for a minimum C rating in England and Wales by April 2025. Future legislation could see landlords unable to take on new tenants or face fines if they fail to comply with the changes.
A lack of information appeared to be a key issue for landlords looking to comply with EPC changes with 31% citing it as a barrier for them in improving the EPC ratings of their properties. Ultimately, 68% of landlords agree that there isn’t enough support for them to make improvements.
The research, part of Shawbrook’s Confronting the EPC Challenge report, highlights the role that both lenders and brokers can play in supporting landlords with creating a more sustainable property portfolio. The research shows that 56% of landlords have now spoken to either a lender or broker about the expected EPC proposals. But four in ten still have not addressed the proposals with either their lender or broker.
Emma Cox, MD of Real Estate at Shawbrook, commented: “Landlords are already grappling with a volatile housing market so it's vital that they are planning ahead where possible. The government has made clear its aspirations for net zero buildings and every homeowner and property investor in the UK will have a role to play in getting us to this goal. However, while many landlords have done their homework and know of the current EPC proposals there is still a huge amount of uncertainty.
“While some in the industry are waiting for a confirmation from the government or direction on the timings of the proposals, others are already taking action to make their properties more sustainable. “The fear is with materials and service costs going up, improvement work could become increasingly expensive as the proposed 2025 deadline comes closer.
“At Shawbrook we want to support our landlords as they look to improve the energy efficiency of their properties, and at our recent industry roundtable, we discussed the role that brokers and lenders can play and the guidance we can offer. We’re continuing to work alongside UKGBC and speak to our broker partners, and customers and about the upcoming legislation and the wider impact on tenants of the cost of living crisis and would urge the rest of the industry to be doing the same.”
