introduction
New research from Landbay reveals that 74% of landlords support the government's choice to abandon the requirement for all rental properties to attain an Energy Performance Certificate rating of at least C by 2028. The recent survey of landlords reveals a shift in attitudes toward energy efficiency upgrades for properties, particularly when it is not mandated by law. The survey indicates that slightly fewer landlords are inclined to make changes without a legal requirement.
Investment opportunities
Buy-to-Let Strategies: Landlords Shift Intentions on EPC Ratings Post-Requirement Removal
Among landlords with lower-rated properties, over six out of ten (62%) express intentions to upgrade to a C rating. Within this group, 42% plan to make changes at some point in the future, while 20% aim to upgrade as soon as possible. However, a quarter (25%) state they will only consider changes if legislation mandates it in the future, and 13% express no intention of taking any action.
This contrasts with the period before the removal of the EPC minimum requirement, where a larger proportion of landlords (73%) expressed intentions to bring their properties up to a C rating. Among these, 39% planned to wait until closer to the previously proposed 2028 deadline, and 34% intended to do so sooner.
Challenges in Property Upgrades: Landlords' Views on EPC Requirement Removal
The primary barriers to upgrading properties to meet the EPC C standard, as identified by landlords, are the associated expenses and challenges of retrofitting older properties. Interestingly, a notable 26% of landlords were not in favour of the removal of the EPC minimum requirements. They believe in the social and environmental duty to provide energy-efficient housing and argue that landlords should be actively improving the ratings of their properties.
Rob Stanton on Realism in Property Investment: Landbay Insights
Rob Stanton, Business Development Director at Landbay, acknowledges the commendable sentiment to enhance the energy efficiency of buildings but emphasises the need for realism. Stanton notes the vast amount of older housing in the UK that is challenging to retrofit and comes with substantial costs. Some landlords express a willingness to update their properties if there is more government assistance, such as accessible grants. With over half of rental properties in the UK rated D or lower, landlords now have some breathing space to plan without the pressure of a looming deadline.
Energy Efficient Property for Buy-to-Let Investors
Some landlords are now contemplating selling their buy-to-let properties instead of injecting further funds into them.
conclusion
Henley Capital offers a wide-selection of property in key cities in the UK for rental and price growth that are compliant with the forthcoming regulations, saving property investors significant outlay to upgrade existing non-compliant properties.
